CM-2019-0402 - 12/23/2019 CITY OF ROUND ROCK AGREEMENT
FOR PROFESSIONAL CONSULTING SERVICES
FOR ARBITRAGE REBATE COMPLIANCE SERVICES
WITH
AMERICAN MUNICIPAL TAX-EXEMPT COMPLIANCE
This Agreement for Professional Consulting Services (hereinafter referred to as the
"Agreement") shall recite the contractual terms whereby the City of Round Rock, Texas (herein
referred to as the "City") engages American Municipal Tax-Exempt Compliance (herein referred
to as "Amtec" or the "Consultant") to perform, by way of illustration and not limitation, the
following services:
Provision of necessary investment arbitrage calculation services for all long-term
bonds issued by the City of Round Rock which are subject to the 1986 Tax
Reform Act, as amended.
This Agreement is made by and between the City of Round Rock, a Texas home-rule
municipal corporation, whose offices are located at 221 East Main Street, Round Rock, Texas
78664, and American Municipal Tax-Exempt Compliance, whose offices are located at 90 Avon
Meadow Lane,Avon, Connecticut 06001.
RECITALS:
WHEREAS,City has determined that there is a need for the delineated services; and
WHEREAS,City desires to contract for such professional services; and
WHEREAS, the parties desire to enter into this Agreement to set forth in writing their
respective rights,duties and obligations hereunder;
NOW,THEREFORE,WITNESSETH:
That for and in consideration of the mutual promises contained herein and other good and
valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is
mutually agreed between the parties as follows:
1.01 EFFECTIVE DATE,DURATION,AND TERM
This Agreement shall be effective on the date this Agreement has been signed by each
party hereto, and shall remain in full force and effect unless and until it expires by operation of
the term indicated herein, or is terminated or extended as provided herein.
The term of this Agreement shall be for sixty (60) months periods from the effective
date of the Agreement as defined herein.
00436294/ss
City reserves the right to review the Agreement and contractual relationship at any time,
and may elect to terminate same with or without cause or may elect to continue.
1.02 SCOPE OF WORK DELINEATION
For purposes of this Agreement Consultant has issued its Statement of Work. Such
Statement of Work is attached as Exhibit "A" and incorporated herein by reference for all
purposes. This Agreement, including all exhibits, shall evidence the entire understanding and
agreement between the parties and shall supersede any prior proposals, correspondence or
discussions.
Consultant shall satisfactorily provide all services described under the attached Statement
of Work within the contract term specified in Section 1.01. Consultant's undertakings shall be
limited to performing services for City and/or advising City concerning those matters on which
Consultant has been specifically engaged. Consultant shall perform its services in accordance
with this Agreement, in accordance with any appended exhibits, in accordance with due care,
and in accordance with prevailing industry standards for comparable services.
1.03 PAYMENT FOR SERVICES; PAYMENT FOR REIMBURSABLE EXPENSES;
SUPPLEMENTAL AGREEMENTS
Not-to-Exceed Total for Payment for Services: Unless subsequently changed by
additional Supplemental Agreement to this Agreement, duly authorized by City Council or City
Manager action, Consultant's total compensation hereunder shall not exceed Twenty Thousand
Eight Hundred and No/100 Dollars ($20,800.00) for the term of this Agreement. This amount
represents the absolute limit of City's liability to Consultant hereunder unless same shall be
changed by additional Supplemental Agreement, and City shall pay, strictly within the confines
of the not-to-exceed sum recited herein, Consultant's professional fees for work done on behalf
of City.
Not-to-Exceed Total for Payment for Reimbursable Expenses: No reimbursable expenses
are authorized or allowed under this Agreement.
Supplemental Agreements: The terms of this Agreement may be modified by written
Supplemental Agreement hereto,duly authorized by City Council or City Manager action, if City
determines that there has been a significant change in (1) the scope, complexity, or character of
the services to be performed; or (2) the duration of the work. Any such Supplemental
Agreement must be executed by both parties within the period specified as the term of this
Agreement. Consultant shall not perform any work or incur any additional costs prior to the
execution, by both parties, of such Supplemental Agreement. Consultant shall make no claim for
extra work done or materials furnished unless and until there is full execution of any
Supplemental Agreement, and City shall not be responsible for actions by Consultant nor for any
costs incurred by Consultant relating to additional work not directly authorized by Supplemental
Agreement.
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1.04 TERMS OF PAYMENT
Invoices: To receive payment, Consultant shall prepare and submit a series of monthly
detailed invoices to City for services rendered. Each invoice for professional services shall detail
the services performed, along with documentation. All payments to Consultant shall be made on
the basis of the invoices submitted by Consultant and approved by City.
Should additional backup material be requested by City, Consultant shall comply
promptly. In this regard, should City determine it necessary, Consultant shall make all records
and books relating to this Agreement available to City for inspection and auditing purposes.
If City has any dispute with work performed, then City shall notify Consultant within
thirty (30) days after receipt of invoice. In the event of any dispute regarding the work
performed,then and in that event Consultant shall either(a) satisfactorily re-perform the disputed
services or(b)provide City with an appropriate credit.
Payment of Invoices: City reserves the right to correct any error that may be discovered
in any invoice that may have been paid to Consultant and to adjust same to meet the
requirements of this Agreement. Following approval of invoices, City shall endeavor to pay
Consultant promptly, but no later than the time period required under the Texas Prompt Payment
Act described in Section 1.08 herein. Under no circumstances shall Consultant be entitled to
receive interest on payments which are late because of a good faith dispute between Consultant
and City or because of amounts which City has a right to withhold under this Agreement or state
law. City shall be responsible for any sales, gross receipts or similar taxes applicable to the
services, but not for taxes based upon Consultant's net income.
Offsets: City may, at its option, offset any amounts due and payable under this
Agreement against any debt(including taxes) lawfully due to City from Consultant, regardless of
whether the amount due arises pursuant to the terms of this Agreement or otherwise and
regardless of whether or not the debt due to City has been reduced to judgment by a court.
1.05 REQUIRED REPORTS
Consultant agrees to provide City with any necessary detailed interim and final written
reports, together with all information gathered and materials developed during the course of the
project. Additionally, Consultant agrees to provide City with any necessary oral presentations of
such detailed interim and final written reports, at City's designation and at no additional cost to
City.
1.06 LIMITATION TO SCOPE OF WORK
Consultant and City agree that the scope of services to be performed is generally
enumerated in Exhibit "A." Notwithstanding anything herein to the contrary, the parties agree
that City retains absolute discretion and authority for all funding decisions, such decisions to be
based solely on criteria accepted by City which may be influenced by but not be dependent on
Consultant's work.
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1.07 NON-APPROPRIATION AND FISCAL FUNDING
This Agreement is a commitment of City's current revenues only. It is understood and
agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year
if the governing body of City does not appropriate funds sufficient to purchase the services as
determined by City's budget for the fiscal year in question. City may effect such termination by
giving Consultant a written notice of termination at the end of its then-current fiscal year.
1.08 PROMPT PAYMENT POLICY
In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to be
made by City to Consultant will be made within thirty (30) days of the date City receives goods
under this Agreement, the date the performance of the services under this Agreement are
completed or the date City receives a correct invoice for the goods or services,whichever is later.
Consultant may charge interest on an overdue payment at the "rate in effect" on September 1 of
the fiscal year in which the payment becomes overdue, in accordance with V.T.C.A., Texas
Government Code, Section 2251.025(b). This Prompt Payment Policy does not apply to
payments made by City in the event:
(1) There is a bona fide dispute between City and Consultant, a contractor,
subcontractor, or supplier about the goods delivered or the service performed that
causes the payment to be late; or
(2) There is a bona fide dispute between Consultant and a subcontractor or between a
subcontractor and its supplier about the goods delivered or the service performed
that causes the payment to be late;
(3) The terms of a federal contract, grant, regulation, or statute prevent City from
making a timely payment with federal funds; or
(4) The invoice is not mailed to City in strict accordance with any instruction on the
purchase order relating to the payment.
1.09 TERMINATION
This Agreement may be terminated for any of the following conditions:
(1) By City for reasons of its own, with or without cause, and not subject to the
mutual consent of any other party, such written termination notice to be given to
the other party not less than thirty (30)days prior to termination.
(2) By mutual agreement and consent of the parties, such agreement to be in writing.
(3) By either party for failure by the other party to perform the services set forth
herein in a satisfactory manner, such termination notice to be given in writing to
the other party.
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(4) By either party for failure by the other party to fu I t i I 1 its obligations herein.
(5) By satisfactory completion of all services and obligations described herein.
Should City terminate this Agreement as herein provided, no fees other than fees due and
payable at the time of termination shall thereafter by paid to Consultant. City shall pay
Consultant for all uncontested services performed to date of notice of termination.
If either party defaults in performance of this Agreement or if City terminates this
Agreement for default on the part of the other party, then City shall give consideration to the
actual costs incurred by Consultant in performing the work to the date of default. The cost of the
work that is useable to City, the cost to City of employing another firm to complete the useable
work,and other factors will affect the value to City of the work performed at the time of default.
The termination of this Agreement and payment of an amount in settlement as set forth
above shall extinguish all rights, duties,and obligations of City and the terminated party to fulfill
contractual obligations. Termination under this section shall not relieve the terminated party of
any obligations or liabilities which occurred prior to cancellation.
1.10 INDEPENDENT CONTRACTOR STATUS
Consultant is an independent contractor, and is not City's employee. Consultant's
employees or subcontractors are not City's employees. This Agreement does not create a
partnership, employer-employee, or joint venture relationship. No party has authority to enter
into contracts as agent for the other party. Consultant and City agree to the following rights
consistent with an independent contractor relationship:
(1) Consultant has the right to perform services for others during the term hereof.
(2) Consultant has the sole right to control and direct the means, manner and method
by which services required by this Agreement will be performed.
(3) Consultant has the right to hire assistants as subcontractors, or to use employees
to provide the services required by this Agreement.
(4) Consultant or its employees or subcontractors shall perform services required
hereunder,and City shall not hire, supervise,or pay assistants to help Consultant.
(5) Neither Consultant nor its employees or subcontractors shall receive training from
City in skills necessary to perform services required by this Agreement.
(6) City shall not require Consultant or its employees or subcontractors to devote full
time to performing the services required by this Agreement.
(7) Neither Consultant nor its employees or subcontractors are eligible to participate
in any employee pension,health, vacation pay, sick pay,or other fringe benefit
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plan of City.
1.11 NON-SOLICITATION
All parties hereto agree that they shall not directly or indirectly solicit for employment,
employ,or otherwise retain staff of the other during the term of this Agreement.
1.12 CONFIDENTIALITY; AND MATERIALS OWNERSHIP
Any and all programs, data, or other materials furnished by City for use by Consultant in
connection with services to be performed under this Agreement, and any and all data and
information gathered by Consultant, shall be held in confidence by Consultant as set forth
hereunder. All parties agree to hold all confidential information in the strictest confidence and
not make any use thereof other than for the performance of this Agreement. Notwithstanding the
foregoing, the parties recognize and understand that City is subject to the Texas Public
Information Act and its duties run in accordance therewith.
Any and all materials created and developed by Consultant in connection with services
performed under this Agreement, including all trademark and copyright rights, shall be the sole
property of City at the expiration of this Agreement.
1.13 WARRANTIES
Consultant warrants that all services performed hereunder shall be performed consistent
with generally prevailing professional and industry standards, and shall be performed in a
professional and workmanlike manner. Consultant shall re-perform any work not in compliance
with this warranty.
1.14 INDEMNIFICATION
Consultant agrees to hold harmless, exempt, and indemnify City, its officers, agents,
directors, servants, representatives and employees, from and against any and all suits, actions,
legal proceedings, demands, costs, expenses, losses, damages, fines, penalties, liabilities and
claims of any character, type, or description, including but not limited to any and all expenses of
litigation, court costs, attorneys fees and all other costs and fees incident to any work done as a
result hereof.
City agrees to hold harmless, exempt, and indemnify Consultant, its officers, agents,
directors, servants, representatives and employees, from and against any and all suits, actions,
legal proceedings, demands, costs, expenses, losses, damages, fines, penalties, liabilities and
claims of any character, type, or description, including but not limited to any and all expenses of
litigation, court costs, attorneys fees and all other costs and fees incident to any work done as a
result hereof.
In no event shall either party be liable to the other for special or consequential damages,
statutory or otherwise.
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1.15 ASSIGNMENT AND DELEGATION
The parties each hereby bind themselves, their successors, assigns and legal
representatives to each other with respect to the terms of this Agreement. Neither party may
assign any rights or delegate any duties hereunder without the other's prior written approval.
1.16 LOCAL,STATE AND FEDERAL TAXES
Consultant shall pay all income taxes, and FICA (Social Security and Medicare taxes)
incurred while performing services under this Agreement. City will not do the following:
(1) Withhold FICA from Consultant's payments or make FICA payments on its
behalf;
(2) Make state and/or federal unemployment compensation contributions on
Consultant's behalf; or
(3) Withhold state or federal income tax from any of Consultant's payments.
If requested, City shall provide Consultant with a certificate from the Texas State
Comptroller indicating that City is a non-profit corporation and not subject to State of Texas
Sales and Use Tax.
1.17 COMPLIANCE WITH LAWS,CHARTER AND ORDINANCES
A. Consultant, its consultants, agents, employees and subcontractors shall comply
with all applicable federal and state laws,the Charter and Ordinances of the City of Round Rock,
as amended, and all applicable rules and regulations promulgated by local, state and national
boards, bureaus and agencies. Consultant shall further obtain all permits, licenses, trademarks,
copyrights, and the like required in the performance of the services contracted for herein, and
same shall belong solely to City at the expiration of the tern of this Agreement.
B. In accordance with Chapter 2270,Texas Government Code,a governmental entity
may not enter into a contract with a company for goods and services unless the contact contains
written verification from the company that it: (1)does not boycott Israel; and (2)will not boycott
Israel during the terms of this contract. The signatory executing this Agreement on behalf of
Consultant verifies Consultant does not boycott Israel and will not boycott Israel during the term
of this Agreement.
1.18 FINANCIAL INTEREST PROHIBITED
Consultant covenants and represents that Consultant, its officers, employees, agents,
consultants and subcontractors will have no financial interest, direct or indirect, in the purchase
or sale of any product, materials or equipment that will be recommended or required hereunder.
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1.19 DESIGNATION OF CITY REPRESENTATIVE
City hereby designates the following representative authorized to act in its behalf with
regard to this Agreement:
Susan Morgan, CPA, CFO
221 East Main Street
Round Rock,Texas 78664
Telephone: 512-218-5444
1.20 NOTICES
All notices and other communications in connection with this Agreement shall be in
writing and shall be considered given as follows:
(1) When delivered personally to recipient's address as stated herein; or
(2) Three (3) days after being deposited in the United States mail,with postage
prepaid to the recipient's address as stated in this Agreement.
Notice to Consultant:
Raymond H. Bentley
President,Amtec
90 Avon Meadow Lane
Avon,CT 06001
Notice to City:
City of Round Rock City Attorney's Office
City Manager AND TO: Stephan L. Sheets, City Attorney
221 East Main Street 309 East Main Street
Round Rock, TX 78664 Round Rock, TX 78664
Nothing contained in this section shall be construed to restrict the transmission of routine
communications between representatives of City and Consultant.
1.21 APPLICABLE LAW; ENFORCEMENT AND VENUE
This Agreement shall be enforceable in Round Rock, Texas, and if legal action is
necessary by either party with respect to the enforcement of any or all of the terms or conditions
herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall
be governed by and construed in accordance with the laws and court decisions of Texas.
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1.22 EXCLUSIVE AGREEMENT
The terms and conditions of this Agreement, including any appended exhibits, constitute
the entire agreement between the parties and supersede all previous communications,
representations, and agreements, either written or oral, with respect to the subject matter hereof.
No modifications of this Agreement will be binding on any of the parties unless acknowledged in
writing by the duly authorized governing body or representative for each party.
1.23 DISPUTE RESOLUTION
If a dispute arises under this Agreement, the parties agree to first try to resolve the
dispute with the help of a mutually selected mediator. If the parties cannot agree on a mediator,
City shall select one mediator and Consultant shall select one mediator and those two mediators
shall agree upon a third mediator. Any costs and fees, other than attorney fees, associated with
the mediation shall be shared equally by the parties.
City and Consultant hereby expressly agree that no claims or disputes between the parties
arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration
proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9
USC Section 1-14) or any applicable state arbitration statute.
1.24 ATTORNEY FEES
In the event that any lawsuit is brought by one party against any of the other parties in
connection with this Agreement, the prevailing party shall be entitled to seek to recover its
reasonable costs and reasonable attorney fees.
1.25 FORCE MAJEURE
Notwithstanding any other provisions of this Agreement to the contrary, no failure, delay
or default in performance of any obligation hereunder shall constitute an event of default or a
breach of this Agreement, only to the extent that such failure to perform, delay or default arises
out of causes beyond control and without the fault or negligence of the party otherwise
chargeable with failure, delay or default; including but not limited to acts of God, acts of public
enemy, civil war, insurrection, riots, fires, floods, explosion, theft, earthquakes, natural disasters
or other casualties, strikes or other labor troubles, which in any way restrict the performance
under this Agreement by the parties.
Consultant shall not be deemed to be in default of its obligations to City if its failure to
perform or its substantial delay in performance is due to City's failure to timely provide
requested information, data, documentation, or other material necessary for Consultant to
perform its obligations hereunder.
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1.26 SEVERABILITY
The invalidity, illegality, or unenforceability of any provision of this Agreement or the
occurrence of any event rendering any portion of provision of this Agreement void shall in no
way affect the validity or enforceability of any other portion or provision of this Agreement. Any
void provision shall be deemed severed from this Agreement, and the balance of this Agreement
shall be construed and enforced as if this Agreement did not contain the particular portion of
provision held to be void. The parties further agree to amend this Agreement to replace any
stricken provision with a valid provision that comes as close as possible to the intent of the
stricken provision.The provisions of this Article shall not prevent this entire Agreement from
being void should a provision which is of the essence of this Agreement be determined void.
1.27 STANDARD OF CARE
Consultant represents that it is specially trained, experienced and competent to perform
all of the services, responsibilities and duties specified herein and that such services,
responsibilities and duties shall be performed, whether by Consultant or designated
subconsultants, in a manner according to generally accepted business practices.
1.28 GENERAL AND NUSCELLANEOUS
The section numbers and headings contained herein are provided for convenience only
and shall have no substantive effect on construction of this Agreement.
The failure of a party to exercise any right hereunder shall not operate as a waiver of said
party's right to exercise such right or any other right in the future.
Time is of the essence to this Agreement. Consultant understands and agrees that any
failure of Consultant to complete the services due under this Agreement within the agreed term
as delineated in Section 1.01 herein will constitute a material breach of this Agreement.
City agrees to provide Consultant with one (1) fully executed original of this Agreement
document.
This Agreement may be executed in multiple counterparts, which taken together shall be
considered as one original.
[Signatures on the following page.]
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IN WITNESS WHEREOF, the parties have executed this Agreement on the dates
hereafter indicated.
AMERICAN MUNICIPAL TAX-EXEMPT COMPLIANCE(AMTEC)
By: 4,& 1�u.CAI
Printed Name: Raymond H. Bentley
Title: President
Date Signed: December 5, 2019
CITY OF ROUND ROCK, TEXAS
By: o
b
Printed Name: Zt
Title: 324
Date Signed: aIZA 12019
FOR CITY,ATTEST: (�
By: V a
FOR CITY, P OVED/AST FORM:
By: !,.
StephatkL. Sheets, City Attorney
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Exhibit "A"
CITY OF ROUND ROCK, TEXAS
REQUEST FOR PROPOSAL
Arbitrage Rebate Compliance Services
SOLICITATION NUMBER 19-032
-A
9�1
AMTEC
American Municipal Tax-Exempt Compliance Corporation
October 3,2019
Exhibit "A"
Table of Contents
Executive Summary 1
6. Proposal Format:
A. Tab 1—Business Organization: 4
B. Tab 2—System Concept and Solution: 5
C. Tab 3—Methodology&Technical Approach: 13
D. Tab 4—Project Management Structure: 18
E. Tab 5—Experience&Qualifications: 19
F. Tab 6—Personnel: 23
G. Tab 7—Authorized Negotiator: 27
H. Tab 8—Attachments and Addendums: 28
I. Tab 9—Cost Proposal: 37
i.
Exhibit "A"
90 Avon Meadow Lane
Avon,CT 06001
AMTEC (T) 860-321-7521
(F) 860-321-7581
Mnerican-%luiii6pal Tax Exempt(omplimic'. www.amteccorp.com
October 3,2019
City of Round Rock
Attn:Cheryl Kaufman
Purchasing Division
221 E.Main Street
Round Rock,TX 78664-5299
Re: City of Round Rock,Texas
Request for Proposal(RFP)for Arbitrage Rebate Compliance Services,Solicitation Number 19-032
Greetings Ms.Kaufman:
Thank you for inviting AMTEC to submit its Proposal for Arbitrage Rebate Compliance Services to the City of
Round Rock, Texas (the "City") for current and future issuances of municipal debt. AMTEC appreciates this
opportunity and welcomes additional dialogue with the City.
Executive Summary
AMTEC was appointed as the City's arbitrage rebate compliance specialist in 2009 and again in 2014. During
this time period,the following was accomplished:
Seamless transition to AMTEC's service;
Catch-up of several years of computations that had not been completed;
100%restatement of the activity for all older calculations prepared by other firms;
Annual rebate reports as of the City's Fiscal Year End for all active bond issues;
Timely delivery of Computation Date(5-Year)Reports within 45 days of payment dates;
• The preparation of an Annual Report and Executive Summary for each fiscal year end;and,
Full support of the arbitrage rebate function for the City over the entire contract period.
It is clear from our experience since 2009 that the City understands its obligation to comply with Section 148(f)
of the Internal Revenue Code(the"Code")and has worked over the years to achieve this goal. It is understood
that we will continue to deliver the highest level of diligence and unlimited support to guarantee that the City is in
compliance with the Code as related to arbitrage rebate and provide a competitively priced product. We will
continue to perform the scope of work and other important services that have been delivered since 2009.
Since 2009,AMTEC has rendered hundreds of arbitrage rebate opinions for over 30 bond issues. Today,we are
very pleased to report that ALL City bond issues are in compliance with the Code. This was made possible through
the efforts of our respective professional staff members. We thank the City for assisting us with this outcome.
We are also pleased to have developed an extremely productive relationship with Lorie Lankford and Lisa Haines.
We thank Ms. Lankford and Ms. Haines, who worked diligently with our staff for many years, witnessed our
service and can attest to the streamlining of this function for the City.
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Exhibit "A"
As a result of the efforts placed upon the delivery of timely and effective services in the early years,annual rebate
computations arrive systematically each year. While our rebate report delivery appears to be almost effortless,the
methods that evolved and are currently followed reflect a significant amount of hard work and coordination
between the City and AMTEC over the last 10 years.
We are confident that Ms.Lankford and Ms.Haines are able to provide assurance that the City receives:
• Unlimited support by AMTEC with all of the City's tax compliance functions;and,
• The continuation and flawless record of compliance with the Code.
Why should the City retain AMTECfor this assignment?
• AMTEC is one of the few nationally recognized,dedicated providers of arbitrage rebate computations
and refunding verification services. Providing these services for thousands of bond issues across the
United States gives us a unique and thorough understanding of the Code and the Treasury Regulations.
• AMTEC is one of the earliest providers of Arbitrage Rebate Compliance Services and has operated
under our original name longer than any of our competitors.
• AMTEC is one of the most trusted Refunding Verification Agent providers,since offering this service
beginning in 2002 to issuers,financial advisors and underwriters.
• AMTEC is a qualified Small and Minority(Asian)Business Enterprise.
• AMTEC has spent thousands and thousands of dollars in the past several years towards technological
advances,which have made us more efficient than ever,allowing us to pass on our savings to our
clients. We have created and continue to improve the following:
• AMTEC ARC,AMTEC Corporation 2010-2019,is our proprietary software to compute arbitrage,
rates of returns,commingled funds,spending exceptions,etc.
• AMTEC BankUScan System,AMTEC Corporation 2012-2019,is our proprietary software that
makes it possible to directly receive bank statements,paper or electronic,and convert them into a
readable electronic file that can be stored indefinitely.
• SwifTEC Report,AMTEC Corporation 2016-2019,is an innovative approach to assembling reports
directly related to the AMTEC ARC and BankUScan System.
With its national client base, AMTEC brings significant financing and compliance experience from other
jurisdictions, resulting in enhanced exposure to diverse and innovative financing structures with a guarantee of
accuracy and efficiency in the arbitrage rebate computations for our clients.
We compute arbitrage all day every day. We invest in our future to become more efficient so we can pass on the
savings to our clients. We do not charge by the hour or for questions or additional assistance the City may require.
We never charge additional or add-on fees. Our guaranteed fee is guaranteed. AMTEC will provide the
City with an opportunity to significantly reduce its costs for Arbitrage Rebate Compliance Services over the next
year and further into the future.
Fees are not the only reason that separates us from our competition. Customer service—Large or small,you'll
feel like our only client. We answer the phone when you call. We respond to emails almost instantly. We
complete our reports in a timely fashion. The last 10 years working for the City has confirmed this.
AMTEC—Key Points Summary
• Work with City staff to continue the efficient method for the transfer of investment and disbursement
activity from bond proceeds;
• Prepare rebate reports as of the required reporting dates;and,
• Provide the City with all IRS payment filings and written instructions and unlimited support including
support for any IRS inquiry.
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Exhibit "A"
For decades,AMTEC has specialized in arbitrage rebate and refunding verification services for clients across the
country. In fact,unlike many of our competitors,these are the only services we provide to clients—all day,every
day. This level of specialization—along with our proven, repeatable processes—drive efficiencies that provide
significant cost savings to our clients,supported by our guaranteed fee structure. And our uncommon focus
means you can always feel confident that a partnership with AMTEC will ensure your compliance with IRS
regulations will never be in doubt.
Work Plan Summary and Comprehensive Reporting—Our work plan includes a continuation of annual rebate
reports for all active issues and a review of the documentation for any new issues. Each rebate report contains an
executive summary,detailed and concise computations,definitions of applied terms,computation methodology,
recommendations and AMTEC's professional opinion. All computations are completed in accordance with the
Code and the Treasury Regulations,as amended. Our opinion for the City will remain unchanged and contains
the following wording: "The methodology used is consistent with current tax law and regulations and may
be relied upon in determining the rebate liability."
AMTEC's Compliance and Service Philosophy — Our service enables issuers to become proactive rebate
managers. We structure our services toward the early recognition of any rebate liability through timely annual
computations(or semiannual,when necessary)and realignment of investments. This enables the City to optimize
the earnings from its investment of bond proceeds.
AMTEC remains qualified and committed to continue Arbitrage Rebate Compliance Services. We are
familiar with each bond issue and various projects of the City. Based upon our understanding of the project and
the Scope of Work requested,we propose a reduction of our original guaranteed fee structure. The City has our
pledge that fees will not increase over the entire term of the contract.
The material in the pages that follow is detailed and corresponds to the City's requirements. We trust that our
service has been acceptable and thank you for the opportunity to continue providing arbitrage rebate computations
and support to the City of Round Rock.
Very truly yours,
"MI
Raymond H.Bentley
President
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Exhibit "A"
6. Proposal Format:
A. Tab 1—Business Organization:
American Municipal Tax-Exempt Compliance Corp.dba AMTEC was incorporated in 1990 as an S corporation
in Connecticut. AMTEC is an independent consulting firm and a qualified Small and Minority Business
Enterprise (S/MBE)that specializes in arbitrage rebate calculations nationally. Our founder began performing
arbitrage rebate calculations in 1986 before forming AMTEC in 1990 and today,we remain the oldest dedicated
arbitrage rebate specialty firm still operating under its original name. 100%of our resources are pledged to
arbitrage rebate and refunding verification transactions.
AMTEC has achieved 30 years of success in our industry and we continue to search for new technologies and
methodologies to streamline the computation and compliance process for our clients and increase our own
efficiency. As a result of this focus,we have earned a reputation as a high-quality,competitively-priced provider
of Arbitrage Rebate Compliance Services. We are able to deliver Arbitrage Rebate Compliance Services for any
size bond issue on an extremely cost-effective basis. We have the confidence,expertise and a proven track record.
We also have many references who will confirm our claims of accuracy and fair dealings.
AMTEC operates from a centralized location in Avon,Connecticut. Here,8 professional and support staff manage
our nationwide client base of more than 1,900 municipal bond issuers and the calculations of arbitrage rebate for
more than 6,100 bond issues. The centralized business model results in a consolidation of our personnel in order
to provide swift, accurate and cost-effective service to our national client base. We feel very strongly that by
maintaining a single office of highly skilled and experienced managers and technicians, we can respond more
effectively to any situation that may arise during the course of a business day. Our clients appreciate our prompt
response to their questions. We staff our office from 8:00 A.M. until 8:00 P.M. EST to ensure daily support of
our West Coast clients so when you call,a trained staff member will be here to answer your question.
Supporting many local offices, if only staffed with one or two people,usually is inefficient and requires higher
fees to maintain multiple locations. Often,firms that claim multiple offices do not staffthese locations with trained
personnel. These offices are designed to give the appearance of a local or regional presence. We guarantee that
AMTEC will support the City throughout the engagement.
4
Exhibit "A"
B. Tab 2—System Concept and Solution:
The City has issued several series of bonds. Bonds were issued for a variety of purposes including capital projects
for roads and infrastructure,equipment and refundings. The structure of the City's bond issues range in complexity
and include general obligation,sales tax revenue and certificates of obligation.
It is clear from our experience since 2009 that the City understands its obligation to comply with the Code and has
worked over the years to achieve this goal. It is understood that we will continue to deliver the highest level of
diligence and unlimited support to guarantee that the City is in compliance with the Code as related to arbitrage
rebate and provide a competitively priced product.
We will continue to perform the scope of work and other important services that have been delivered since 2009.
All services will be performed within 45 days after each calculation date as we generally deliver calculations
within 15 days of receiving the required bond and investment activity from the City.
In addition to our prompt service and support,by engaging AMTEC,the City has and will continue to"lock in"
its costs for arbitrage rebate computations for the duration of the engagement term. More importantly,the City
received the full support and expertise of AMTEC for additional services. These services include,but are not
limited to,the following:
• Unlimited consultation and support in the event of an IRS inquiry of a rebate computation. If the IRS
places an issue under investigation or follows up to ensure calculations were completed,it could take
hours of time by bond counsel,financial advisors and staff to respond to the questions raised by such a
review. AMTEC is the only consultant that provides this service to our clients for no additional fee.
• Provide pre-issuance rebate forecasting from estimated bond proceeds spending schedules and basic
investment information. From this data,we can prepare the potential investment earnings from an issue
along with an estimate of the rebate amount,if any,or the qualification potential from a spending
exception from rebate.
• Development of a database of all active bond issues that is used for senior managers of the City as well
as the City's auditors for financial statement purposes.
As the incumbent,we find it prudent to review our approach,goals and objectives for the City that were submitted
in 2009,and again in 2014,and achieved in their entirety following our appointment.
AMTEC's Management Plan and 2009/2014 Pledge—Reaffirmed
"#'AMTEC is selected as your consultant,we will never make you feel as though you workfor us. We will exceed
your expectations and do whatever is required to ensure the engagement runs smoothly from the onset."
We have kept our word and continue this pledge of consistent and unwavering service to the City for this
engagement.
AMTEC's Understanding and Objectives
• Our single,most important objective is to assure the City that its bond issues are in full compliance with
the Code and Treasury Regulations,as amended.
Secondary Objectives Include:
• Assisting the City to maximize its earnings from bond proceeds through regularly prepared rebate reports,
by providing significant information about the performance of its selected investments and determining
their effectiveness. This is accomplished within our rebate reports that display the computed rate of return
5
Exhibit "A"
from all investments and compare this yield to the bond yield,quantifying the amount of excess earnings,
which can be expressed as a positive or a negative number. With this information, management may
target higher yielding qualified investments in the event negative arbitrage has accumulated or establish
reserves for the future payment of a rebate liability,if one accumulates.
SIX MAJOR TASKS TO ACHIEVE SERVICE OBJECTIVES
1. Restate All Prior Rebate Reports.—Completed in 2009
A 100%restatement and legal review of the prior activity extracted from the prior rebate reports,from the date of
each closing through the date of the last report received by the City.
AMTEC provided this transition service for no additional charge. Our restatement of the prior rebate reports
ensures that the prior computations were accurate. Additionally,the City will need only the most recent AMTEC
rebate report to encompass the entire rebate history that dates back to the closing for each bond issue.
2. Update rebate calculations through current bond anniversary dates and issue formal reports.
—This has been done annually.
Formal computations with AMTEC's opinion have been provided as of each bond anniversary date. Reports were
consistently delivered within 15 days of receiving the required bond and investment information from the City or
its designee.
3. Issue formal rebate reports on five-year Bond Computation Dates — All Computation Date
Reporting is Current.
In addition to annual reporting discussed above, formal reports have been issued on each Computation Date(5-
year anniversary date)for no additional fee. Five-year reports are referred to as Computation Date Reports and
are required for compliance with the Code.
4. Intellectual Review Process—An AMTEC Trademark—Every report delivered to the City has
received this review.
The arbitrage rebate computation is not complete once the numbers have been crunched. This is when our
expertise,gained over 30 years of service,provides the analytics necessary to ensure that our computations and
final determinations are accurate. Our senior staff members are expert in the application of the Code and the
Treasury Regulations. No AMTEC report is complete without a detailed review of all information that will
ultimately comprise the arbitrage rebate computation.
During this review,we ensure that every opportunity to lawfully reduce the arbitrage rebate liability and yield
reduction liability has been implemented. Since many of the techniques and methodologies lawfully allowed to
reduce rebate are not elected before the closing,our expertise with the application of the Regulations is carefully
compared with the bond and investment history of the issues. The results can include important compliance
information as follows:
• A potential spending exception from rebate;
• The value of the spending exception when negative arbitrage accumulates;
• The quantitative value of a spending exception when the Reserve Fund generates a rebate liability;
• Determine valuation methodology for ending asset balances that lawfully reduce the rebate liability;
• Identification of the Temporary Period when the investment of bond proceeds is unrestricted and any
actions that may result in a restriction on the proceeds;
• Identification of any yield restrictions that have been placed on the proceeds following the end of the initial
Temporary Period and any other Temporary Period that may result from receipt and investment of debt
service payments;and,
• The testing of the Universal Cap for a potential de-allocation of bond proceeds.
6
Exhibit "A"
5. Develop an Arbitrage Database—This is completed and updated annually and has been used
by the City to prepare financial statements.
A database was developed and is maintained by AMTEC. This information has been provided to the City and its
Auditor regularly. The database contains key information about each bond issue and includes,but is not limited
to the following:
Bond Yield Investment Yield Rebate Liability
Closing Date Maturity Date Computation Date
Temporary Period Yield Restrictions Refunding Data
Prior Rebate Paid Transferred Proceeds Fees
6. Proactive Support From AMTEC
Since all bond issues have been brought current and formal rebate reports document the arbitrage status of the
issues,AMTEC works with the staff of the City to"manage"its rebate liability.
Arbitrage rebate was originally thought and is still believed by many of our competitors,that arbitrage rebate is
only a"legal"and compliance issue,similar to income tax filings. As long as it is done in a timely manner,it will
not be subject to negligence and penalties.
AMTEC believes there is much more to achieve than being timely. Municipalities can benefit by utilizing the
information contained in each rebate report to increase income from the investment of bond proceeds and,at the
same time,reduce its rebate liability to the lawfully smallest amount or qualify for an exception from rebate and
retain all investment income. Active management of the rebate liability is a task that is critical to the success of a
compliance plan.
Each AMTEC rebate report contains an Executive Summary for senior managers and all of the detail for
accounting/support personnel and auditors. We identify the rebate liability and it is expressed as a positive or a
negative number. If a positive number results and an exception from rebate is possible,we provide the subsequent
spending levels and dates that the City must achieve to retain the excess income. If the issue cannot qualify for an
exception from rebate, we provide a recommended set-aside amount for future payment to the United States
Treasury.
DETAILED SCOPE OF WORK
All calculations and services related to the arbitrage and/or rebate penalty election requirements contained in the
Code and those regulations promulgated therein. Applying applicable federal tax rules,the calculations are to be
performed with respect to the City bond issues, current and future for the term of this engagement will be
accomplished following the steps identified below.
Verify that the issue is subject to the Rebate Requirement. Initially,the Tax Agreements,Official Statements
and other relevant documents are reviewed. The Tax Agreement,prepared by bond counsel,provides information
about the bond proceeds and other funds that could be subject to rebate and information relating to rebate
exceptions. These documents provide the information which enables us to complete an independent verification
of the bond yield.
Identify which funds are subject to yield restriction. The Tax Agreement is the roadmap for the arbitrage
consultant. Within the Tax Agreement, each fund and account subject to yield restriction is identified. This
information forms the foundation for all rebate computations and incorporates the length of each Temporary
Period along with the types of restrictions placed on each class of proceeds, including debt service reserve funds
and surplus funds.
7
Exhibit "A"
Identification of Unrestricted and Restricted Assets
Three-Year Temporary Period. Generally speaking,proceeds from the sale of the bonds used for capital project
purposes are unrestricted for a three-year period following the sale of the bonds. This time flame is referred to as
the Temporary Period.
During the Temporary Period,bond proceeds may be invested at a yield above the bond yield(without restriction)
and issuers are required to pay a rebate of the excess earnings above the bond yield to the United States Treasury.
An exception to paying a rebate occurs when the issuer qualifies for one of the spending exceptions from rebate.
Certain actions by issuers can cause the Temporary Period to terminate before three years. One of the more
common actions occurs when any of the bonds are advance refunded. This action truncates the Temporary Period
and any unspent capital project funds will become yield restricted.
Restrictions on Bond Proceeds. All bond proceeds invested are yield restricted with the exclusion of bond
proceeds used for capital purposes as described above for a three-year Temporary Period or when the proceeds
have been used to fund a Debt Service Reserve Fund.
Absolute Yield Restrictions. Bond proceeds deposited into an Escrow Fund that are used to pay future principal,
interest and redemption premium on bonds are yield restricted and may not be invested above the bond yield.
Other Yield Restriction—Not Absolute. Unspent bond proceeds are yield restricted following the end of the
Temporary Period. However, due to the nature of bond proceeds in a Capital Projects Fund, the Regulations
provide issuers with the ability to maintain their investments,regardless if they are generating excess yield, and
pay the excess yield to the United States Treasury in the form of a Yield Reduction Payment or YRP. A YRP is
similar to a rebate payment and paid at the same time and in the same manner.
Calculate the bond yield. Since the bond yield is the basis for arbitrage liability,ensuring that all amounts are
identified and applied in accordance with the Code is extremely important. Amounts such as the original issue
discounts,premiums and qualified guarantee payments are needed to complete this process.
From the information gathered in the bond document and review process,AMTEC independently computes the
bond yield for each fixed yield issue. Occasionally, the fixed bond yield provided to bond counsel by the
underwriter is not complete or may contain inaccuracies. Through AMTEC's independent verification of the bond
yield,the City will be assured that the bond yield has been recomputed in accordance with the Regulations and is
correct.
Identify,and separately account for,all"Gross Proceeds"(as that term is defined in the Rebate Requirement)of
the bond issue, including those requiring allocation analyses due to"transferred proceeds" and/or"commingled
funds"circumstances.
Reconciliation of Proceeds. The Tax Agreement is used to reconcile the sources and uses of funds which can be
tracked into the various bond and capital accounts. This step is important because the correct amount of bond
proceeds must be identified and measured in order to ensure that the final rebate results are accurate. Failure to
perform these initial steps violates the integrity of the rebate computation work which must follow.
Identification of transferred proceeds and development of transferred proceeds schedules are performed
systematically with current and advance refundings.
Uncommingling funds (when applicable) are not evident until the rebate computation has commenced. Our
analysis of the various asset accounts will provide evidence of a commingled fund. Once detected,we can utilize
8
Exhibit "A"
our internal process to uncommingle bond proceeds from non-bond proceeds or bond proceeds between two or
more issues,such as a single debt service reserve fund for issues of a certain type to compute the rebate.
Our internal controls have been designed to provide the rebate amount, investment income and rate of return for
each bond fund or account. Our expertise,which has been derived from the completion of more than 6,100 rebate
computations,provides special insight that only this experience can offer.
Our analysts have historical experience with all types of qualified investments and our internal controls highlight
unusual rates of return,either high or low,which are often the result of commingling. When this occurs,we use
our expertise and provide a series of tests that will easily identify the transactions that cause most aberrations in
rebate computations.
Obtain the necessary information related to investments,including investment and expenditure detail and interest
earnings. AMTEC has confidence that the information provided by the City will be adequate to complete arbitrage
rebate computations. AMTEC does not require the creation of a new layer of accounting strata to provide the
records required to compute rebate.
Investment Portfolio Evaluation. Along with the disbursement listings,we gather information on the unspent
bond proceeds and investments. Each investment is valued for every calculation. AMTEC follows the regulatory
valuation requirements and selects the most advantageous valuation method. The most advantageous valuation is
the one that produces the smallest amount of rebate. We use care in these determinations to ensure market value
fluctuations do not give rise to erroneous rebate returns.
As a final control, the total income from the portfolio is identified and compared to the actual sums received.
Project disbursements and investment income amounts are also balanced, ensuring that all items have been
identified and are recorded in the financial records.
Regulatory Changes,Procedural Review and Recommendations
During the course of the engagement,AMTEC provides its clients with detailed information on any changes to
the Treasury Regulations. In addition,if changes in the Treasury Regulations would provide an improved rebate
position or refund for the City,AMTEC would restate the computations for no additional fee and present it for
internal review.
Record Keeping Review and Recommendations. During the course of our engagement,a review of the record
keeping process and investment policy is conducted. AMTEC will evaluate and make recommendations on
current investment and record keeping practices for all funds subject to rebate to ensure the City systems and
procedures meet the requirements of the Code. Through 2018,no recommendations were necessary as the City
is in compliance with all recordkeeping requirements.
Project Schedule/Reports
Perform Excess Earnings(Arbitrage)Calculations
• Computing/verifying the allowable yield limit for each issue;
• Compute the estimated rebate liability,if any;and,
• Compute the excess earnings as of the Computation Date.
Computation of excess earnings(the rebate amount)is completed following the computation of the bond yield.
The technical steps to an-ive at the excess earnings amount are enumerated within above.
Rebate Consolidation. We solve the rebate for each account within a specific issue. Once each separate account
has been solved and reconciled, the entire report is consolidated and the rebate amount is identified. The
9
Exhibit "A"
consolidation produces a blended rate of return and rebate amount for all accounts within an issue. We also provide
the individual computations for each fund so our clients can easily determine which funds are generating arbitrage
profits and which are generating losses.
Testing for Rebate Exceptions and Penalty in Lieu of Rebate Elections. Once we have determined the rebate
amount,we continue to test for exceptions from rebate. If a rebate liability has accumulated and the issue qualifies
for an exception from rebate,we will issue our opinion utilizing the rebate exception criteria and the rebate would
not be payable.
If a client has elected to pay a penalty in lieu of rebate,we would discover this election during our bond document
review and apply the penalty test and remit any penalty on a timely basis in accordance with the Regulations.
Comprehensive Calculations,Reports and Opinions. The rebate report is a formal document issued together
with an executive summary, all computation schedules and the professional opinion of AMTEC. Our opinion
cites the various computation methodologies used to arrive at the rebate amount and indicates that all computations
are in accordance with the Code.
AMTEC's opinion is generally broader than most opinions and clearly provides the assurance that our
computation methodology is in accordance with the Code and the City may rely on it. The opinion will remain
unchanged for this engagement.
AMTEC's professional opinion provides a level of confidence that rebate computations are accurate and in
accordance with the Code. Our opinion is backed by our full faith and credit and a multi-million dollar professional
liability insurance policy.
Issuance of Annual Rebate Reports and 5-Year Anniversary Computation Date Reports with an executive
summary and schedules. Identification of the methodology employed,major assumptions,conclusions,and any
recommendations for changes in the City record keeping and investment policy are also included. Report copies
will be provided in the quantity and format requested by the City.
Annual Executive Summary. AMTEC's Annual Report of all bond issues will be prepared for the City annually,
at each year end and updated on a regular basis throughout the year. The Report is an executive summary of each
outstanding bond issue subject to the rebate requirements.
It was developed to assist senior managers understand the most important issues concerning their arbitrage
liability,Code compliance status and other key data,without having to read multiple rebate reports in their entirety.
The Annual Executive summary will list the rebate liability for all issues at a glance. AMTEC staff and the City
will know which issues are the highest priority at all times.
IRS Reporting Requirements
Internal Revenue Service Reporting Requirements including the preparation filings required by the Internal
Revenue Service necessary for the payments of arbitrage rebate or refunds.
IRS Reporting. Should a rebate liability exist on a Computation Date, AMTEC would prepare the required
transmittal documents for IRS reporting. The completed documentation and letter of instructions would be
provided within 45 days advance of the payment due date.
IRS Representation by AMTEC is included and unlimited as long as we are engaged as your consultant. There
is no additional fee for this representation. There is no limit to the amount of support we will provide should the
City become subject to a random IRS inquiry. AMTEC will employ the correct methodology and procedures to
demonstrate to the IRS the compliance work completed by the City is in accordance with the Code.
10
Exhibit "A"
ADDITIONAL SERVICES
Develop Post-Issuance Tax Compliance Policy and Written Procedures and present this Program for
Compliance to the City staff that enables the City to"Check the Box"on lines 43 and 44 of IRS Form 8038.
Training of the City Staff regarding arbitrage and rebate. This program is very interesting and provides financial
professionals an overview of this topic and the Code. It is a user friendly presentation and blends the technical
aspects of this topic into an understandable format. The presentation lasts about one-half day and will be provided
upon request for no additional fee.
Electronic Off Site Back-Up. We will provide with electronic back-up of all data and reports generated by
AMTEC for a period that extends three years after the redemption date or last maturity date of an issue. This data
is created daily and moved off-site to a secured storage facility. Should additional support or assistance with
records retention be necessary,documentation or retrieval of any items that are related to its rebate computations,
they will be made available by AMTEC,upon request.
AMTEC's standard Scope of Services includes,but is not limited to,the following:
• Verification that each issue is subject to the rebate requirements.
• Calculation of the bond yield.
• Calculate the gross proceeds through a reconciliation of the sources and uses of funds.
• Calculation of the yield on all investments,subject to rebate,annually and upon the date that all bonds of
an issue are retired.
• Determine the arbitrage rebate liability.
• Verification of whether a penalty in lieu of rebate has been elected.
• Testing for exceptions from rebate.
• Proforma calculations that include a projection of the arbitrage rebate liability,either negative or
positive.
• Written explanation of the computation methodology and recommendations for rebate reserves. Each
rebate report includes a written explanation of the methodology,assumptions and conclusions
employed.Recommendations for rebate reserves or the elimination of negative arbitrage and
recommendations accompany each report.
• Delivery of updated calculations and formal rebate reports,rebate exception reports and penalty in lieu
of rebate reports,each indicating the above stated information;
• Issuance of the AMTEC professional opinion,which is legally enforceable,stating that the computations
are in accordance with Section 148(f)of the Internal Revenue Code and the Treasury Regulations and
that the methodology used is consistent with current federal tax law and regulations and may be relied
upon by the City in determining its arbitrage rebate liability.
• Delivery of appropriate documentation required to support all computations with each report.
• Unlimited consultation with City personnel,as necessary,regarding arbitrage related matters.
Consultation on the results of our report with staff,bond counsel,auditors,trustees and the IRS.
• Monitoring of the City's ongoing compliance with all arbitrage requirements for its tax-exempt issues
and the safeguarding of completed projects for a period of six years after the final redemption date of
each issue.
• Assurance to the City that all current issues are in compliance with the Treasury Regulations.
• Guarantee the completeness and accuracy of our work,computation methodology and positive
compliance with Section 148(f)of the Internal Revenue Code and the Treasury Regulations.
• Preparation of IRS Form 8038-T,accompanying documentation,payment instructions and report
delivery,within 45 days of the computation date should a rebate payment be required.
• Review of existing accounting and investment practices/recommendations for improvements.
11
Exhibit "A"
• Assistance in the planning stages of new bond issues to discuss possible rebate exceptions,the pro-forma
testing of anticipated expenditures of proceeds for rebate exception purposes based on a variety of
investment scenarios.
• Provide the City with expert assistance regarding required documents and data collection.
• Request all relevant investment data from the City or trustee and perform reviews and analysis.
• Prepare a comprehensive data base of the bond issues,identifying relevant information such as bond
yield,investment yield,the next rebate calculation date and the rebate liability.
• Provide annual arbitrage rebate reports,and anniversary reports,through the term of the contract.
• Discuss the arbitrage rebate report and findings with City to ensure full understanding of the procedures
and recommendations in such report.
12
Exhibit "A"
C. Tab 3—Methodology&Technical Approach:
The computation of arbitrage rebate is defined by methodology, technical proficiency and practice through the
understanding of Section 148(f) of the Internal Revenue Code and Treasury Regulations to ensure consistent
application. AMTEC has developed its own proprietary software, internal process and practices. These tools,
along with 30 years of experience, provide a very high level of competence and confidence. Our systems and
training have stood the test of time and tested regularly by the IRS each time we request a refund for a client. They
are also tested by our tax counsel and professional staff daily. When you receive an AMTEC rebate report,you
are assured it is accurate and you are able to take confidence in our work.
The Computational Methodologies
Each relates to the technical aspects of the calculation and includes the selection of computation methods such as
Purpose Investment and Nonpurpose Investment.
Depending on the method selected,even the most skilled arbitrage consultant may compute an inaccurate rebate
amount when using the Nonpurpose Investment method. There are reasons for using these methods that are
discussed below.
The Nonpurpose Investment method requires 100% input of all investment activity. Reports are voluminous
depending on the amount of investments purchased,difficult to follow and ultimately require the attention of an
arbitrage professional to interpret the substantive activity that aggregates the rebate amount, which could be
inaccurate.
Potential Problems with the Nonpurpose Investment Method
Since only the invested proceeds are measured,bond proceeds that may not be immediately reinvested, or set
aside for a disbursement at a later date, will not be reflected in the rebate calculation. The calculation
methodology assumes that the reinvestment and the capital disbursement occur simultaneously. As a result,the
rebate liability computed using this method may be artificially higher than the actual rebate liability since only
invested proceeds are measured.
The occasional lag time created by reinvestments of earnings and capital disbursements that do not occur on the
reinvestment date will generally reduce the rebate liability when factored into a rebate calculation. Amounts not
invested,even for a day,will lawfully reduce the rebate liability when blended with the cash flow of the invested
portfolio.
The Treasury Regulations permit the blending of short lag times caused by the reinvestment of funds and for the
payment of expenditures. However,the purpose investment methodology does not allow this blending to occur
and often results in an inflated rebate liability that is greater than required by Section 148(f)of the Internal Revenue
Code.
Additionally, capital disbursements are not identified in the rebate calculation when using this methodology.
Therefore,it is not possible to identify the amounts spent for capital improvements from a rebate report that utilizes
the purpose investment methodology.
AMTEC's Choice is the Purpose Investment Method. Purpose investments are defined as the expenditure of
the bond proceeds as payment of the bonded project or for the"purpose for which the bonds were issued." This
Methodology is clearly illustrated in the Treasury Regulations,while the others are not. The Purpose Investment
method is the most efficient method and requires professional expertise to be applied accurately. This method
focuses on actual project expenditures and not on extraneous investment activity and money movement from bank
account to bank account. While the Nonpurpose method may not provide an accurate result, it has been our
13
Exhibit "A"
experience that it is inconsistent. It tends to"overstate"the actual rebate amount and is typically utilized by firms
with inexperienced staff or with a high staff turnover rate.
It takes years to train a competent arbitrage calculation specialist. Each AMTEC computation specialist is trained
and mentored by a senior staffprofessional for 2 years before they can provide arbitrage calculations to an AMTEC
client.
Examples of Discretionary Methodology
• Rebate Exception vs.Rebate
• Uncommingling of Funds
• Valuation Methods
In each of the above, the arbitrage consultant must institute an approach that is supported by the Treasury
Regulations. Many times,there is more than one method to follow. As an example: A consultant may advise
their client that an issue qualifies for a spending exception from rebate. Many consultants begin the service here
and if they can"shoehorn"an exception into place and issue the finding,they do not bother to compute the rebate
amount. This practice increases the consultant's profit.
In the current investment arena,there are very few, if any, rebate liabilities accumulating. Therefore, we must
question the value of achieving a spending exception from rebate when no rebate liability has accumulated. In
scenarios such as this, the AMTEC analyst will acknowledge the exception, but provide the rebate calculation
supporting our opinion. This demonstrates that no rebate liability has accumulated and it quantifies the amount of
negative arbitrage. The reasoning is twofold:
First, in the AMTEC report,the IRS(upon review)can see that no rebate liability accumulated,the actual bond
yield,the rate of return from the investment of bond proceeds,the investment income amount and the arbitrage
liability expressed as a positive(liability)or negative(no liability)number. None of which are evident in a rebate
exception computation. The IRS may want to see all of the activity, including construction invoices to confirm
the exception election.
Second,the accumulated negative arbitrage from the project fund during the Temporary Period can be used as an
offset against positive arbitrage generated by a Reserve Fund in a subsequent computation period in a more
favorable investment climate.
Valuation Expertise
Valuation methodologies can greatly increase or decrease the computed rebate liability;the selected firm must be
skilled in all types of qualified investments and apply the investment valuation methodology that produces the
lawfully smallest rebate amount. AMTEC's professional staff have years of training beyond college,where this
is not taught. We are able to provide investment valuations that are 100%accurate and will result in the lawfully
smallest rebate amount. Guaranteed!
Commingled Funds
Many of AMTEC's clients pool or commingle funds from one or more bond issues for the ease of investing funds.
This is not uncommon and while other firms often charge an increased fee for an "uncommingling analysis,"
AMTEC does not charge any fee for this service.
We have developed software programs to separate and allocate principal,interest and balances among any variety
or number of investments. If the City commingles bond proceeds,it will not need to pay AMTEC any additional
fee to provide an"uncommingling analysis."
14
Exhibit "A"
Overall, AMTEC has developed the most accurate and cost-effective arbitrage computation product available.
Our goal is to continue to improve upon our product. By doing so,we are able to eliminate fee increases and pass
the savings onto our clients as our efficiency improves.
As an issuer of tax-advantaged bonds,the City is required to comply with Section 148(f)of the Internal Revenue
Code to maintain the tax-advantaged status of its bonds. It is the City's responsibility to ensure that arbitrage
rebate analyses are performed no later than the fifth anniversary date of each issuance and the requisite rebate
payment is made,if necessary.
AMTEC can help achieve this goal. AMTEC staff follow the same procedures for each bond issue,whether for
an existing client or a new client. This creates an expectation of thoroughness and accuracy relied upon by our
clients. We have outlined our tasks below that will assist the City with its arbitrage rebate reporting requirements.
Task
1. Consult with the City regarding the nature of the debt and collect all necessary documentation and
investment data.
AMTEC provides its clients with unlimited support. This support includes consultation with the City staff,bond counsel,
other City consultants and the IRS.
2. Review documentation for special elections and eligibility forspending exceptions.
Verify that the issue is subject to the rebate requirement. Initially,the Tax Agreements,Official Statements and other
relevant documents are reviewed. The Tax Agreement,prepared by bond counsel,provides information about the bond
proceeds and other funds that could be subject to rebate and information relating to rebate exceptions. The Federal Tax
Certificate prepared by bond counsel and IRS Form 8038-G will provide adequate documentation to determine any
special elections. Spending exceptions,if not specifically elected can be applied,when appropriate,following the
processina of all bond and investment activity.
3. Verify debt service,original issue discount(premium),sources and uses,and calculate the arbitrage yield.
Independently verify data provided by the City corresponds with bond data reported to EMMA by utilizing EMMA
data to reconcile to City generated bond documents.
Calculate the bond yield. Since the bond yield is the basis for arbitrage liability,ensuring that all amounts are identified
and applied in accordance with the Code is extremely important. Amounts such as the original issue discounts,premiums
and qualified guarantee payments are needed to complete this process.
From the information gathered in the bond document and review process,AMTEC independently computes the bond
yield for each fixed yield issue. Occasionally,the fixed bond yield provided to bond counsel by the underwriter is not
complete or may contain inaccuracies. Through AMTEC's independent verification of the bond yield,the City will be
assured that the bond yield has been recomputed in accordance with the Treasury Regulations and is correct.
The bond yield for any variable rate bonds will be computed on each rebate computation date. As an example,if the
rebate was computed at the end of the first bond year,the yield on the bonds would also be computed. The Treasury
Regulations allow the issuers of variable rate bonds to align periods of high interest rates on their bonds and investments in
an effort to minimize rebate. AMTEC uses its discretion as to which periods or variable bond years will produce the least
amount of rebate.
Identify which funds are subject to yield restriction. The Tax Agreement is the roadmap for the arbitrage consultant.
Within the Tax Agreement,each fund and account subject to yield restriction is identified. This information forms the
foundation for all rebate computations and incorporates the length of each Temporary Period along with the types of
restrictions placed on each class of proceeds,including debt service reserve funds and surplus funds.
4. Review/analyze portfolio of investments and the funds and accounts in which the investments are held.
Obtain the necessary information related to investments,including investment and expenditure detail and interest
earnings. AMTEC has confidence that the information provided by the City will be adequate to complete Arbitrage
Rebate Compliance Services. AMTEC does not require the creation of a new layer of accounting strata to provide the
records required to compute rebate.
15
Exhibit "A"
Investment Portfolio Evaluation. Along with the disbursement listings,we gather information on the unspent bond
proceeds and investments. Each investment is valued for every calculation. AMTEC follows the regulatory valuation
requirements and selects the most advantageous valuation method. The most advantageous valuation is the one that
produces the smallest amount of rebate. We use care in these determinations to ensure market value fluctuations do not
give rise to erroneous rebate returns.
As a final control,the total income from the portfolio is identified and compared to the actual sums received. Project
disbursements and investment income amounts are also balanced,ensuring that all items have been identified and are
recorded in the financial records.
A review of the Trust Indenture and Trust Bank Statements will provide the necessary information to complete these
tasks. The timeframe can vary widely depending on the number of funds,accounts and sub accounts as well as the
number of investments held within each account. We have also allocated time for the management of the Trust
Statements each year.
5. Calculate the excess investment earnings(cumulative rebate liability),taking into account any proceeds
that are or have become subject to yield restriction requirements and all credit and debits required or
permitted by the tax regulations.
Perform Excess Earnings Calculations
• Computing/verifying the allowable yield limit for each issue;
• Compute the estimated rebate liability,if any;and,
• Compute the excess earnings as of the Computation Date.
Computation of excess earnings(the rebate amount)is completed following the computation of the bond yield. The
technical steps to arrive at the excess earnings amount are enumerated within above. Exceptions from rebate will be tested
at this juncture,but not utilized in the final results ifthe computation does not produce an arbitrage liability. The value of
any exception from rebate is questionable and should not be used when the arbitrage liability is negative.
6. Deliver a comprehensive report detailing the arbitrage rebate calculations,the rebate liability and any
yield restriction issues as well as an opinion letter regarding the calculations for obligations issued by the
City,which shall provide,among other things,that such calculations were performed in compliance with
federal tax law.
Comprehensive Calculations,Annual Reports and Opinions. The rebate report is a formal document issued together
with an executive summary, all computation schedules and the professional opinion of AMTEC. Our opinion cites the
various computation methodologies used to arrive at the rebate amount and indicates that all computations are in accordance
with the Code and the Treasury Regulations. AMTEC's professional opinion provides the City with a level of confidence
that rebate computations are accurate and in accordance with the Code and the Treasury Regulations.
Formal reports include an executive summary. Identification of the methodology employed, major assumptions,
conclusions,and any recommendations for changes in the City record keeping and investment policy are also included.
7. If required,prepare and provide for signature a completed Form 8038-T for filing with the IRS.
Internal Revenue Service Reporting Requirements including the preparation all filings required by the Internal
Revenue Service necessary for the payments of arbitrage rebate or refunds.
IRS Reporting. Should a rebate liability exist on a Computation Date,AMTEC would prepare the required transmittal
documents for IRS reporting. The completed documentation and letter of instructions would be provided within 45 days
advance of the payment due date.
IRS Representation by AMTEC is included as long as we are engaged as your consultant. There is no additional fee for
this representation. There is no limit to the amount of support we will provide should the City become involved in a review
or audit. Depending on the issues that are brought before the City,we will employ the correct methodology and procedures
to demonstrate to the IRS the compliance work completed by the City is in accordance with the Code and the Treasury
Regulations.
8. Maintain a database of all bond issues for the programs and advise the City of any important dates as they
occur(yield restrictions,calculations and payment dates).
16
Exhibit "A"
A database will be created and maintained by AMTEC. This information will be provided to the City regularly. The
database will contain key information about each bond issue including,but not limited to:
Bond Yield Investment Yield Rebate Liability
Closing Date Maturity Date Computation Date
Temporary Period Yield Restrictions Refunding Data
Prior Rebate Paid Transferred Proceeds Fees
9. Assist the City as requested in the event of an IRS or other inquiry.
As stated above,AMTEC provides unlimited support of its clients for any function within in its expertise,including and IRS
or any other inquiry. There is never a charge for this support.
AMTEC has been and will continue to be in compliance with all applicable rules and regulations of Federal,
State and Local governing entities. AMTEC agrees to comply with terms of this Request for Proposal
(RFP).
17
Exhibit "A"
D. Tab 4—Project Management Structure:
AMTEC has been working with the City since 2009. We have streamlined the arbitrage rebate computation
process,resulting in efficient and cost-effective services. We will only need the assistance of a single City staff
member,knowledgeable in the bond issuance process,to launch and maintain the currency of rebate computations.
Once the project has been launched and the flow of documentation is established,AMTEC staff will initiate all
requests for data. We will deliver rebate reports systematically with no disruption to the City, as detailed
throughout our response.
Ideally,the City will be able to provide an entire copy of each bond transcript. However, if one is not available,
then we will request the following data:
• Official Statement;
• Federal Tax Certificate;
• IRS Form 8038-G;
• Refunding Verification Report,if one exists;and,
• Monthly bank statements and/or Excel tracking data.
The AMTEC Team assigned to this engagement,including roles and responsibilities,is described in Tab 6—
Personnel.
Organizational Chart of the Firm.
Engagement Manager
Raymond Bentley
(President)
Independent Tax Independent Compliance
Counsel Officer
Lisa Soeder,Esq. Michael Torsiello,CPA
Project Manager
Michael Scarfo
(Senior VP)
Team Member Team Member Team Member
Casey Komp Christopher Linehan David Mancuso
(Managing Director) (Vice President) (Vice President)
Reserve Staff
..................................................................................................................................................................................................
.........................................
Back-Up Team Back-Up Team Back-Up Team
Joseph Pascucci Caidyn McGovern Trong Tran
(Analyst/Admin) (Analyst) (cyst)
18
Exhibit "A"
E. Tab 5—Experience&Qualifications:
AMTEC maintains expertise in two key areas of tax compliance:
• Arbitrage Rebate Computations;and,
• Refunding Verification Services.
Arbitrage Rebate Computations are AMTEC's core business. AMTEC developed its program in 1990,
stressing the importance of the arbitrage function not only as a compliance tool for new Federal Regulations,but
as a tool to ensure the highest rate of return from the investment of bond proceeds in qualified securities.
Post-Issuance Tax Compliance is provided in conjunction with arbitrage rebate computations. AMTEC believes
that an issuer who has established and followed comprehensive written procedures to promote post-issuance tax
compliance is less likely to violate the federal tax requirements related to its bond issues. Although it is not likely
that a positive rebate liability will accrue in today's interest environment, it is important to maintain compliance
with the Post-Issuance Tax Compliance guidelines and written procedures, as agreed upon by the City when
checking Boxes 43 and 44 of IRS Form 8038-G. Compliance with certain post-issuance federal tax requirements,
such as arbitrage reporting,involves on-going monitoring throughout the life of the bonds.
Refunding Verification Services provide AMTEC additional leverage over the competition. Although AMTEC
did not enter into the Refunding Verification business until 2002, we have completed in excess of 1,700
transactions as Refunding Verification Agent to both large and small bond issuers. This line of business has grown
exponentially over the last 5 years and rivals our arbitrage business. By being a part of the financing team that is
comprised of the largest and brightest investment banks and financial advisors in the United States, we have
become expert in the tax treatment and structure of any type of taxable or tax-exempt bond issue.
Due to AMTEC's involvement in the role of Verification Agent,our ability to understand each type of bond issue
is enhanced. Our understanding also enables the effective application of the various restrictions placed upon bond
proceeds by Section 148(f)of the Internal Revenue Code and the Treasury Regulations.As these restrictions are
recorded in the Federal Tax Agreement by Bond and Tax Counsel, AMTEC is able to comply with these
instructions using the most efficient and cost-effective methodologies.
AMTEC has achieved 30 years of success in our industry and we continue to search for new technologies and
methodologies to streamline the computation and compliance process for our clients and increase our own
efficiency. As a result of this focus,we have earned a reputation as a high-quality,competitively-priced provider
of Arbitrage Rebate Compliance Services. We are able to deliver Arbitrage Rebate Compliance Services for any
size bond issue on an extremely cost-effective basis. We have the confidence,expertise and a proven track record.
We also have many references who will confirm our claims of accuracy and fair dealings.
AMTEC is legally permitted to operate in Texas and registered with the Texas Secretary of State—No.801266777.
AMTEC has completed arbitrage rebate calculations for more than 289 bond issues in Texas, aggregating over
$8.9 billion of debt. We have provided Arbitrage Rebate Compliance Services for Texas issuers listed below:
Bexar County City of Lubbock Alamo Regional Mobility Authority
City of San Marcos Brazos River Authority San Antonio Alternative Housing Corp.
McLennan County Stayton at Museum Way San Antonio Housing Authority
Houston Community College Fort Bend Baptist Academy Alamo Area Mutual Housing Association,Inc.
Christian Care Centers. Inc. I Merced Housing Texas I Buckingham Senior Living Community
AMTEC has an established presence in Texas and we recently won the San Marcos RFP for the same reasons—
we understand Texas public financing and offer arbitrage expertise/responsive customer service at an economical
fee. We are familiar with the local government investment pools and how they function. We have accumulated
19
Exhibit "A"
years of experience in Texas and consequently,streamlined our processes for our current local clients. We know
that the City's issues are similar to these clients,which will facilitate our rebate computation procedures.
We will continue to assimilate the City's arbitrage reporting requirements into our master task schedule with ease.
September 30''is a common fiscal year end for Texas clients—we are aware of the importance of the arbitrage
analyses and will produce results within a timely fashion for the City, as we have annually for local clients for
many years. As you will see below,we have completed a significant number of analyses for local clients. This
regional experience, along with our national practice, has formed the foundation for one of the most
knowledgeable,and oldest,arbitrage rebate computation firms in the United States.
Complex Bond Issues
Complex bond issues utilized by states,agencies,counties and city governments are not foreign to AMTEC. This
is attributed to many years of performing rebate computations and refunding verification services to state level
governments who usually devise the most complex debt structures. AMTEC has completed rebate computations
for complex issues, including revolving fund programs and commercial paper programs, for the high-profile
issuers listed below.
Nationally,we are exclusive arbitrage calculation provider to the following Cities:
Tulsa OK Providence Colorado Springs CO
Ann Arbor Greenville SC Salem OR
Concord Spartanburg SC Kent A
Fort Lauderdale L Auburn(AL) Riverton
Stillwater OK Tucson(AZ) Glendale(AZ)
Nationally,we are exclusive arbitrage calculation provider to the following States/State-Level issuers:
State of Connecticut State of Mississippi State of West Virginia
Montana Department of Natural Resources and Conservation Massachusetts School Building Authority
New Jersey Economic Development Authority Alaska Municipal Bond Bank
Massachusetts State College Building Authority Massachusetts Development Finance A enc
AMTEC applies the same internal controls and protocol to any bond issue,whether it is for a new client or an
existing client. We have completed thousands of arbitrage rebate computations for the above-referenced types of
bonds. By applying the AMTEC protocol to each and every type of bond issue,we are able to understand the
intricacies of the transaction prior to preparing our report and ensure the elimination of calculation errors.
1. Gather bond documents and investment records.
2. Thoroughly read the bond documents,especially the Federal Tax Certificate,which is the`road map' of
the bond issuance. This document will specify the sources and uses of funds,elections,yield restrictions
and any other requirements relating to the arbitrage compliance of the bonds.
3. Process investment records and ensure results are reasonable.
4. Prepare arbitrage report for internal review and final issuance.
The arbitrage rebate computation is not complete once the numbers have been crunched. This is when our
expertise,gained over 30 years of service,provides the analytics necessary to ensure that our computations and
final determinations are accurate. Our senior staff members are expert in the application of Section 148(f)of the
Internal Revenue Code and the Treasury Regulations. No AMTEC report is complete without a detailed review
of all information that will ultimately comprise the arbitrage rebate computation.
AMTEC has been awarded, on average, 264 new bond issues in each of the last five years. We have already
added 254 new bond issues for 2019. We plan for this growth increase and train staff accordingly. We have never
missed a calculation deadline and this record is due to our organizational expertise, planned professional staff
20
Exhibit "A"
expansion and training program. The staff of AMTEC has the ability to assume the current City issues as well as
those that will be issued into the future just as we are available today. We are always ready to assist our clients
and our reputation for service excellence has been in place for 30 years. AMTEC is ready to continue this
engagement immediately,should the City retain us.
AMTEC computes arbitrage rebate for thousands of bond issues that are structured similarly to the City. These
tables provide evidence of our experience in providing Arbitrage Rebate Compliance Services and arrays the types
of clients and number of clients since our inception.
From 2014 to 2018
New Bond Issues
# Aggregate Debt Aggregate
Year Bond Issues Bond Issues Issuance Debt
1990-2013 4,573 4,573 $163,445,282,705 $163,445,282.705
2014 192 4,765 $6,794,951,323 $170,240,234,028
2015 232 4,997 $16,249237,071 $186,489,471,099
2016 297 5,294 $15,029,581,478 $201,519,052,577
2017 243 5,537 $12,043,657,412 $213,562,709,989
2018 358 5,895 $24,822,588,158 $238,385,298,147
14-18 New Issues 12,322 $74,940,015,442
Total Issues 5,895 1 $238,385,298,147
From 2014 to 2018 From 2014 to 2018
New Bond Issues Calculations Com leted
Type # #Calculations Aggregate
of Issuer Bond Issues Year Completed Calculations
State 139 1990-2013 17,152 17,152
Ci /County 388 2014 1,861 19,013
School Districts/Misc. 795 2015 1,459 20,472
14-18 New Issues 1,322 2016 1,549 22,021
2017 1,225 23,246
2018 1,252 24,498
14-18 Calculations 7,346
Total Calculations 24,498
AMTEC has assisted issuers of tax-advantaged debt on numerous occasions with the Internal Revenue Service
(the"IRS"). These matters have involved general audits,pointed audits, arbitrage rebate refunds and arbitrage
and yield reduction payments with or without late interest and penalties. Most,if not all,inquiries were eventually
closed by the IRS with no adverse action to the issuer
Over the years, we have successfully obtained arbitrage rebate refunds in excess of$2,000,000 for our clients,
with another sizeable refund currently in process;however,our most satisfying achievement is described below.
An AMTEC client received a letter from the IRS,informing them that a specific bond issue was under general
audit. After months of back and forth,including helping our client provide all data related to the arbitrage rebate
calculation,the IRS computed the rebate liability internally and required that the following be paid:
$36,546—Rebate Liability
$19,223—Penalty
$1,193—Late Interest
21
Exhibit "A"
Our client had previously retained AMTEC for this analysis and our last report had indicated that the rebate
liability was negative$(324,913.07)—reporting to the IRS was not necessary.
Since AMTEC provides unlimited representation in front of the IRS to all of its clients, we contacted the IRS
and asked for their computations. Upon review, we realized that the IRS had used the Purpose/Nonpurpose
Investment Methodology(discussed above)and failed to make sign convention changes as interest income was
received into the bond proceeds account.
By failing to reflect the activity using the appropriate sign convention,investment income deposited into the fund,
which should have been expressed with a minus (—) sign, was processed as though it was an additional
disbursement giving rise to the erroneous rebate liability. AMTEC studied the calculations prepared by the IRS
and responded with our findings. The IRS promptly dropped its inquiry.
This may seem like a simple oversight,but to the untrained and eye,it may have cost a client almost$60,000. As
experts in our field,we defend and stand by our arbitrage rebate analyses. We were persistent and achieved the
outcome in favor of our client.
What did AMTEC charge for this assistance? $0. As your arbitrage rebate consultant,we do not charge an hourly
fee. Representing the City in an IRS audit is included in our Scope of Services,regardless of the amount of time
and effort required for resolution.
22
Exhibit "A"
F. Tab 6—Personnel:
AMTEC utilizes the team approach for our engagements. We have assembled a professional team of 2 senior
managers and 3 team members. Each member of the team is expert in the computation of rebate and the
application of Section 148 of the Internal Revenue Code and the Treasury Regulations.
The team effort ensures that checks and balances,required for complex assignments, are maintained to validate
the integrity of each rebate report. The expertise of the Team also ensures that rebate reports will be completed in
accordance with the reporting schedule. We expect that rebate reports for any issue will be delivered shortly
following the receipt the bond and investment activity from the City.
The Engagement Manager(20%of time)is responsible for the overall effectiveness of the engagement. He
will maintain day-to-day contact with the City. He will develop and implement the compliance plan for the
engagement and maintain contact with the City. He will coordinate AMTEC's team to ensure the flow of the
work with the City is efficient and that all predetermined time,service and other benchmark requirements are met.
The Project Manager(30%of time)ensures that the efforts of AMTEC's team are directed to provide the City
with clear and concise requests for data and financial information that is necessary to provide the arbitrage rebate
computations and all tax-compliance requirements efficiently.(30%of time)
The Project Manager and the Computation Team Members(50%of time)are responsible for the technical
processing of the bond information financial data that was gathered from bond and tax-counsel and the City staff.
By receiving this data,the following is determined:
• Bond yield calculation to include Swaps,if applicable;
• Reconciliation of Sources and Uses of Proceeds;
• Confirm the correct deposit of bond proceeds into various funds and accounts;
• Ensure applicable restrictions are in compliance;
• Determine Temporary Periods for various classes of proceeds;
• Determine if transferred proceeds allocations are applicable;
• Calculate the rebate,yield restriction liability and bona fide debt service fund exception;and.
• Determine overall rate of return and issue formal arbitrage report.
Professional achievements and designations are listed within the resumes that follow.
Name/Title of Selected AMTEC Key Personnel ole Years of Experience
Raymond H.Bentley,President(Engagement Manager) 18
Michael J. Scarfo,Senior Vice President(Project Manager) 18
Christopher J.Linehan,Vice President(ream Member 19
Casey R.Kom ,Managing Director Team Member 5
David G.Mancuso,CPA,MBA,Vice President(Team Member) 9
Compliance Partners
Lisa Soeder,Esq.(Independent Tax Counsel—Compliance Officer 33
Michael Torsiello,CPA(Independent Compliance Officer) 22
Raymond H.Bentley,President and Engagement Manager,is the owner of AMTEC. In this role he leads all
aspects of AMTEC's efforts providing tax-exempt compliance services to a national client base comprising state
governments and agencies; counties, cities and school districts; and specialty and conduit issuers. Under his
leadership, the firm has continued its tradition of providing high-quality, customized service that serves as the
foundation of its numerous long-standing client relationships. Mr. Bentley has been successful in obtaining in
excess of$1 million dollars in the recovery of overpayments under the arbitrage rebate provisions for issuers.
23
Exhibit "A"
During his 18-year tax-exempt compliance career,Mr.Bentley has worked extensively in every technical function
at AMTEC and is thoroughly skilled in every aspect and application of Section 148(f)of the Internal Revenue
Code and the Treasury Regulations. He is one of the few professionals in the U.S.who oversees a portfolio of
arbitrage rebate clients while also acting as refunding verification agent on refinancing transactions.
Mr. Bentley is responsible for the overall effectiveness of the engagement. He develops and implements the
compliance plan for the engagement and maintains contact with the City staff. He coordinates AMTEC's
management and staff to ensure the flow of the work with the City is efficient and that all predetermined time,
service and other benchmark requirements are met. Mr.Bentley will maintain day-today contact with the City.
The function of the Engagement Manager will ensure that the efforts of AMTEC's management and staff are
directed to provide the City with clear and concise requests for data and financial information that is necessary to
provide the Arbitrage Rebate Compliance Services and all tax-compliance requirements efficiently.
Mr.Bentley is registered as a tax preparer with the IRS. He is an associate member of the National Association
of Bond Lawyers and actively participates in a number of governmental associations. He has also developed and
presented a variety of educational materials to clients and financial professionals on the topics of arbitrage rebate
and post-issuance tax compliance. Mr. Bentley is a graduate of Boston University, where he earned a B.S. in
Mathematics Education.
Mr. Bentley promises to service your account today and into the future, as he has for the past 18 years to
countless issuers
Michael I Scarfo,Senior Vice President and Project Manager,is a senior officer of the firm with 18 years of
arbitrage rebate computational expertise. Mr. Scarfo has served as the Project Manager to several of AMTEC's
high profile clients in state and local government. The expertise required to serve high profile clients was
developed following many years of compiling Arbitrage Rebate Compliance Services. Mr. Scarfo has been
responsible for presenting computational documentation to the Internal Revenue Service,resulting in receipt of
millions of dollars of rebate refunds for AMTEC clients. This accomplishment, along with several VCAP
settlements he has participated in over the years, demonstrates his expertise and application of the Treasury
Regulations and the working relationship he has developed with the IRS.
Mr. Scarfo serves on other AMTEC Teams that include the engagement for the States of Minnesota, West
Virginia,Connecticut and Montana,the University of Connecticut and the Virginia Municipal League/Virginia
Association of Counties. He is fully qualified as a professional in all phases of municipal finance, rebate and
refunding making him an expert in the application of Section 148(f)of the Internal Revenue Code and the Treasury
Regulations as they relate to tax-advantaged bonds. Mr.Scarfo is a graduate of the University of Utah.
Christopher I Linehan, Vice President and Team Member,joined AMTEC in 2017 following a 17-year
career in the asset management industry. In his current role as Vice President, he oversees the accuracy of the
Arbitrage Rebate Compliance Services,in addition to supporting AMTEC's refunding verification services efforts
as well as new business development strategies.
Mr.Linehan manages a series of complex Arbitrage Rebate Compliance Services in conjunction with other senior
staff members of the firm. He is experienced in applying various computation methodologies through the
issuances of variable and fixed rate debt. He is proficient in the computation of transferred proceeds,management
of parity reserve allocations,allocation of bond proceeds to investment income and the allocation of expenditures.
Mr. Linehan began his career with GE Company's investment management arm—GE Asset Management
(GERM)—where he held various positions of increasing responsibility with the firm's operations and marketing
teams, ultimately assuming the role of Communications Director. In this position he was responsible for all of
GEAM's major communications processes and initiatives, spanning public relations, strategic client
communications, and employee engagement. In 2016, he served as GE's lead communicator for the transition
process and organizational integration of GEAM into State Street Global Advisors as part of GE's sale of GEAM
24
Exhibit "A"
to State Street Corporation. Mr.Linehan holds a B.A. from the University of Pennsylvania. While with GE,he
held the Series 7,24 and 63 securities licenses.
Casey R Komp,Managing Director and Team Member,began his career at AMTEC five years ago. Since
his hire,Mr.Komp has completed hundreds of refunding verification transactions and has successfully filled the
role of Managing Director for AMTEC's Refunding Verification Service. He has mastered refunding analytics
and has achieved the highest level of understanding of the complex and widely accepted DBC refunding
verification software. He is fully qualified as a professional in all phases of municipal finance and is expert in the
application of Section 148(f) of the Internal Revenue Code and the Treasury Regulations. He is a senior staff
member responsible for AMTEC's refunding verification product.
Mr.Komp manages a series of complex Arbitrage Rebate Compliance Services in conjunction with other senior
staff members of the firm. He is experienced in applying various computation methodologies through the
issuances of variable and fixed rate debt. He is proficient in the computation of transferred proceeds,management
of parity reserve allocations,allocation of bond proceeds to investment income and the allocation of expenditures.
Mr.Komp has been selected multiple times as the engagement manager for the refunding verification by the New
York City Municipal Water Finance Authority,New York State Thruway Authority and the New York State
Environmental Facilities Corporation. Mr. Komp is the Senior Manager of our engagement with the Regional
Transportation District(Colorado),the States of Connecticut and Alaska,the University of Connecticut and the
Cities of Round Rock and Lubbock(TX). Mr.Komp is a graduate of the University of Hartford,where he earned
a B.A.in Mathematics and Minor in Actuarial Science.
David G. Mancuso, CPA, MBA, Vice President and Team Member,joined AMTEC five years ago as a
Rebate Analyst following 4 years working as a payroll auditor and an accountant. Mr. Mancuso has been
promoted to his current position as a result of his tax background,mastering many aspects of tax compliance tasks
that are necessary to qualify for a computation team member.
Mr.Mancuso manages a series of complex Arbitrage Rebate Compliance Services in conjunction with other senior
staff members of the firm. He is experienced in applying various computation methodologies through the
issuances of variable and fixed rate debt. He is proficient in the computation of transferred proceeds,management
of parity reserve allocations,allocation of bond proceeds to investment income and the allocation of expenditures.
He is qualified to compute arbitrage rebate for fixed and variable rate debt. He is proficient in the computation of
transferred proceeds,management of parity reserve allocations,allocation of bond proceeds to investment income
and the allocation of expenditures. Mr.Mancuso serves on other AMTEC Teams that include the engagement for
the States of Minnesota, Connecticut and Montana,the University of Connecticut, Illinois Wesleyan University
and the University of Massachusetts. He has prior experience as an accountant in a public accounting firm,
leveraging this experience to his current position. He has mastered refunding analytics and has achieved a level
of understanding of the complex and widely accepted DBC refunding verification software. He is fully qualified
as a professional in all phases of municipal finance,rebate and refunding making him an expert in the application
of Section 148(f) of the Internal Revenue Code and the Treasury Regulations as they relate to tax advantaged
bonds. Mr. Mancuso is a graduate of The University of Hartford where he earned his undergraduate degree in
Accounting and an MBA from the University of Tampa.
Compliance Partners are not employees of AMTEC. We occasionally work with these 2 nationally recognized
professionals to provide advice with respect to certain tax matters—they will not perform any arbitrage rebate
calculations. If they are called upon for consultation,AMTEC will not pass on the costs of their services to the
City. By utilizing their independent expertise,it provides our clients with a conforming opinion for no additional
charge.
25
Exhibit "A"
Lisa P. Soeder, Soeder & Associates, LLC — Hartford, CT and Nantucket, MA, is an Independent Tax
Counsel Contractor to AMTEC. Ms. Soeder has worked on various federal income tax issues, with particular
emphasis on matters relating to the issuance of state and local government tax-exempt bonds,and has performed
research,reviewed tax issues and participated in the structuring of issues of general obligation bonds of states and
cities,revenue and private activity bonds. She has represented issuers,underwriters and borrowers in tax-exempt
governmental construction and cash flow financings as well as taxable issues of bonds; in the development of
clean water revolving loan fund programs; in the structuring of a convention center authority in Connecticut
authorized to issue tax-exempt bonds;and in exempt small issues,exempt facilities and 501(c)(3)financings.
Ms. Soeder received her LL.M. in Taxation from New York University, her J.D. from the University of Notre
Dame,and her B.A.from the State University of New York at Oneonta. She is admitted to practice in the States
of New York,Massachusetts and Connecticut. She is a member of the Bar Associations of New York State(Tax
Section);Connecticut(Tax Section),and American(Tax Exempt Financing Section).
Michael Torsiello, C.P.A. —Tax Compliance Partner, Morrisville, North Carolina, is a licensed Certified
Public Accountant who has over 22 years of diversified experience in public accounting and financial management
of sizable corporations. Mr. Torsiello is a member of the American Institute of Certified Public Accountants
(AICPA) and North Carolina Association of Certified Public Accountants (NCACPA) and is a Certified
Construction Industry Professional. Mr. Torsiello is AMTEC's tax compliance partner, when necessary, and
ensures each engagement is performed in accordance with standards established by the AICPA, in addition to
signing off on the final refunding verification report.
26
Exhibit "A"
G. Tab 7—Authorized Negotiator:
Raymond H.Bentley is authorized to negotiate Contract terms and render binding decisions on Contract matters.
Raymond H.Bentley
President,AMTEC
90 Avon Meadow Lane
Avon,CT 06001
(t)860-321-7521
(e)rbentley&amteccorp.com
27
Exhibit "A"
H. Tab 8—Attachments and Addendums:
See the pages that follow:
• Attachment A
• Attachment B
• Attachment C
• Addendum No. 1,dated September 10,2019
• AMTEC S/MBE Certification—South Central Texas Regional Certification Agency
28
City of Round Rock Exhibit "A"
Arbitrage Rebate Compliance Services
RFP 19-032
Class/item: 918-04/918-49
AUGUST 2019
ATTACHMENT A
PROPOSAL SUBMITTAL FORM AND EXECUTION
NOTE: RESPONDENTS SHALL COMPLETE AND RETURN THIS ATTACHMENT WITH THEIR
PROPOSAL. FAILURE TO DO SO WILL RESULT IN DISQUALIFICATION OF THE PROPOSAL.
By signature hereon,the Respondent certifies that:
All statements and information prepared and submitted in the response to this RFP are current, complete
and accurate.
He/she has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity,
future employment, gift, loan gratuity, special discount, trip, favor, or service to a City employee in
connection with the submitted response. Failure to sign the Execution of Proposal or signing it with a
false statement shall void the submitted offer or any resulting contracts.
Respondent represents and warrants that the individual signing this Execution of Proposal is authorized
to sign this document on behalf of the Respondent and to bind the Respondent under any contract
resulting from this request for proposals.
RESPONDENT (COMPANY): American M'u'nicipal Tax-Exempt Compliance Corp. dba AMTEC
~
SIGNATURE (IN INK): • 9A#J
NAME(TYPED/PRINTED) Raymond H. Bentley
TITLE: President DATE: October 3. 2019
STREET: 90 Avon Meadow Lane
CITY/STATE/ZIP: Avon. CT 06001
TELEPHONE AND FAXSCMILE NO.: (t) 860-321-7521 860-321-7581
E-MAIL ADDRESS: rbentley��amteccorp.com
FEDERAL TAX IDENTIFICATION NUMBER(FIN): 06-1308917
By submitting a response to this solicitation, the Respondent agrees that the City's standard Definitions,
Terms and Conditions, in effect at the time of release of the solicitation, shall govern unless specifically
provided otherwise in a separate agreement or on the face of a purchase order. Said Definitions, Terms and
Conditions are subject to change without notice. It is the sole responsibility of respondents to stay apprised of
changes. In addition to the above General Terms and Conditions listed in Section IV, the City's Definitions,
Terms and Conditions shall be enforced and part of the contract and can be obtained from the City's website
at: https://www.roundracktexas.gov/departments/purchasing/
Page 12 of 13
29
Exhibit "A"
ATTACHMENT B:
REFERENCE SHEET
PLEASE COMPLETE AND RETURN THIS FORM WITH THE SOLICITATION RESPONSE
SOLICITATION NUMBER: 19-032
RESPONDENT'S NAME: AMTECDATE: October 3, 2019
Provide the name, address, telephone number and E-MAIL of at least three(3) valid Municipal, Government
agencies or firms of comparable size that have utilized services that are similar in type and capacity within the
last two(2) years. City of Round Rock references are not applicable. References may be checked prior to
award. If references cannot be confirmed or if any negative responses are received it may result in the
disqualification of submittal.
1. Company's Name Bexar County, Texas
Name of Contact Juan Arteaga
Title of Contact Director of Accounting
E-Mail Address iarteaga@bexar.org
Present Address 101 W. Nueva, Suite 800
City, State, Zip Code San Antonio, TX 78205
Telephone Number (21 0 )335-2301 Fax Number: ( 210 ) 335-2683
2. Company's Name City of Lubbock, Texas
Name of Contact D. Blu Kostelich
Title of Contact Chief Financial Officer
E-Mail Address bkostelich(a�mail.ci.lubbock.tx.us
Present Address 1625 13th Street
City, State, Zip Code Lubbock, TX 79401
Telephone Number ( 806 ) 775-2212 Fax Number: ( 806 ) 775-2051
3. Company's Name City of San Marcos, Texas
Name of Contact Heather Hurlbert, CPA, CGFO
Title of Contact Finance Director
E-Mail Address hhurlbert@sanmarcostx.gov
Present Address 630 E. Hopkins
City, State, Zip Code San Marcos, TX 78666
Telephone Number ( 512 ) 393-8170 Fax Number: ( 855 ) 697-4658
FAILURE TO PROVIDE THE REQUIRED INFORMATION WITH THE SOLICITATION RESPONSE MAY
AUTOMATICALLY DISQUALIFY THE RESPONSE FROM CONSIDERATION FOR AWARD.
30
"A"
ATTACHMENT C-Yhibiturrent Outstanding Debt
General Debt Service
Principal Proceeds
Issue Year Type Outstanding Remaining
2011 General Obligation Refunding Bonds $ 8,670,000 $ -
2012 Venue Tax& Hotel Occupancy Tax Revenue Bonds 7,005,000 -
2013 General Obligation Refunding Bonds 3,235,000 -
2014 General Obligation Bonds 64,895,000 11,121,758
2014A General Obligation Refunding Bonds 2,390,000 -
2014 Certificates of Obligation 2,475,000 -
2015 General Obligation Refunding Bonds 26,010,000 -
2015 RRTEDC Sr. Lien Sales Tax Revenue Refunding Bonds 3,750,000 -
2016 General Obligation Refunding Bonds 5,410,000 -
2016 Hotel Occupancy Tax Revenue Refunding Bonds 3,420,000 -
2017 General Obligation Bonds 28,585,000 12,629,649
2017 RRTEDC Sr. Lien Sales Tax Revenue Refunding Bonds 6,475,000 -
2018 Certificates of Obligation 6,915,000 124,566
2019 General Obligation Refunding Bonds 12,210,000 -
2019 Certificates of Obligation 27,250,000 25,433,813
2019 RRTEDC Sr. Lien Sales Tax Revenue Bonds 21,310,000 1,117,905
Utility Debt Service
2014 Utility System Revenue Bonds $ 6,695,000 $ 2,914,153
2016 Utility System Revenue Refunding Bonds 34,705,000 -
2017 Utility System Revenue Refunding Bonds 31,970,000 -
31
ATTACHMENT C- Current Outstanding Debt
AMTEC Guaranteed Fee Pricing
General Debt Service
Principal Proceeds FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Issue Year Type Outstanding Remaining Fee* Fee* Fee* Fee* Fee*
2011 General Obligation Refunding Bonds $ 8,670,000 $ - $ - $ - $ - $ - $ -
2012 Venue Tax&Hotel Occupancy Tax Revenue Bonds 7,005,000 - - - - - -
2013 General Obligation Refunding Bonds 3,235,000 - - - - - -
2014 General Obligation Bonds 64,895,000 11,121,758 400 400 400 - -
2014A General Obligation Refunding Bonds 2,390,000 - - - - - -
2014 Certificates of Obligation 2,475,000 - - - - - -
2015 General Obligation Refunding Bonds 26,010,000 - - - - - -
2015 RRTEDC Sr. Lien Sales Tax Revenue Refunding Bonds 3,750,000 - - - - - -
2016 General Obligation Refunding Bonds 5,410,000 - - - - -
2016 Hotel Occupancy Tax Revenue Refunding Bonds 3,420,000 - - - - - -
2017 General Obligation Bonds 28,585,000 12,629,649 400 400 400 - -
2017 RRTEDC Sr. Lien Sales Tax Revenue Refunding Bonds 6,475,000 - - - - - -
2018 Certificates of Obligation 6,915,000 124,566 - - - - -
2019 General Obligation Refunding Bonds 12,210,000 - - - - - -
2019 Certificates of Obligation 27,250,000 25,433,813 400 400 400 400 -
2019 RRTEDC Sr. Lien Sales Tax Revenue Bonds 21,310,000 1,117,905 400 - - -
Utility Debt Service
2014 Utility System Revenue Bonds $ 6,695,000 $ 2,914,153 400 400 - - -
2016 Utility System Revenue Refunding Bonds 34,705,000 - - - - - -
2017 Utility System Revenue Refunding Bonds 31,970,000 - - - - - -
Estimate of Newly Issued Bonds
2020 2020#1 400 400 400 400 -
2020 2020#2 400 400 400 400 -
2020 2020#3 400 400 400 400 -
2020 2020#4 400 400 400 400 -
2021 2021 #1 - 400 400 400 400
2021 2021 #2 - 400 400 400 400
2021 2021 #3 - 400 400 400 400
2022 2022#1 - - 400 400 400
2022 2022#2 - - 400 400 400
2023 2023#1 - - - 400 400
2023 2023#2 - - - 400 400
2024 2024#1 - - - - 400
Annual Totals $ 3,600 $ 4,400 $ 4,800 $ 4,800 $ 3,200
Grand Total $ 20,800
* Based on the information provided,this represents our guaranteed not-to-exceed fee. Please note, if an analysis is not required,the associated
fee will not be charged (i.e. proceeds spent within three years of issuance,then no charge thereafter). Additionally,for example,since the City's
fiscal year end is September 30, if Bond 2020#3 and Bond 2020#4 are issued around September 30,2020,there would be no analysis or
fee required for Fiscal Year 2020. We will only charge our guaranteed fee of$400 per year per bond issue that the City requests an analysis.
Exhibit "A"
ROUND ROCK TEXAS
PURCHASING DWISIGN
ADDENDUM
CITY OF ROUND ROCK, TEXAS
Solicitation: 19-032 Addendum No: 1 Date of Addendum: September 10, 2019
This addendum is to incorporate the following changes to the above referenced solicitation,
I. Questions:
Q1. Which eligible agencies have an Interlocal agreement with the City?
Al. Please see the attached list.
Q2. Who is the current provider for arbitrage calculation services?
A2. American Municipal Tax-Exempt Compliance (AMTEC)
03. What is the current provider's pricing structure?
A3. $500 per issue per year, as long as gross proceeds of the Bonds remain outstanding.
Q4. Can the City provide the investment information in an electronic format(ASC text or Excel)?
A4. This is included in the solicitation packet as page 14 and also now attached online as an Excel document.
No changes were made to the document
Q5. Please confirm that the City is only requesting five-year anniversary and final maturity date computations.
A5. No, the City will provide the vendor with information annually to calculate arbitrage for fiscal year-end annual
calculations and five-year anniversary(and final maturity)calculations. Five-year pricing in Part V, Item 6.1.
refers to the total proposed cost of the contract over the 5-year term. It does not relate to the 5-year
anniversary of a bond issue.
Q6. Are the bond proceeds for each bond issue invested separately, or are the bond proceeds from various bond
issues commingled?
A6. Funds are invested separately with CDs. Investment Pools and MM accounts are comingled.
07. How are the majority of the bond proceeds invested? Pooled cash or separate investments (investment
pools, securities, etc.)
A7. They are separate investments(CDs).
08. Does the City's debt service account(s) qualify as a bona fide debt service fund, or are they routinely
overfunded and subject to the rebate computations?
A8. The City's debt service accounts qualify as a debt service fund.
Q9. Does the City maintain a parity reserve for the Utility System bonds?
A9. No.
Q10. Section 6(C)(vi)of the Proposal Preparation Instructions states"...The proposer must state his compliance
with terms of this Request for Proposal (RFP)". Could you please expand upon what you are seeking by
including this statement? Are you looking for a statement that we agree with the scope of work as outlined
in the RFP?
A10. The City is looking for a statement that your company agrees with the scope of work as outlined in the RFP.
If there are any exceptions to the terms and conditions the respondent should clearly list those in their own
section.
32
Exhibit "A"
Q11. What are the current fees and/or annual budget for the arbitrage calculation services?
A11. Our current fees are $500 per bond issue, the last annual arbitrage calculation was$4,500, and$5,000 is
the estimated annual budget for arbitrage.
IL Additional Information: Please see the attached additional information regarding the Excel version of
Attachment C and the list of Interlocal Agreements.
III. Extension: The question and answer period has been extended until Monday, September 16, 2019 and the
proposal due date is hereby extended until Thursday, October 4, 2019 at 3:00 PM CST.
IV. ALL OTHER TERMS AND CONDITIONS REMAIN THE SAME.
APPROVED BY: ( .,c t a September 10, 2019
Cheryl Kauf n, Purcha g Supervisor
Purchasing Office, 512-2 -5417
By the signature affixed below this addendum is hereby incorporated into and made a part of the above referenced
solicitation.
ACKNOWLEDGED BY:
Raymond H. Bentley 1� . &4kl October 3. 2019
Name Auth rized Signature Date
RETURN ONE SIGNED COPY OF THIS ADDENDUM TO THE PURCHASING OFFICE WITH YOUR SEALED
PROPOSAL. FAILURE TO DO SO MAY AUTOMATICALLY DISQUALIFY YOUR RESPONSE FROM
CONSIDERATION FOR AWARD.
33
I
Exhibit "A"
Houston-Galveston Area Council
City of Desoto
Capital Metropolitan Transit Authority
Region 4 Education Service Center
City of College Station, Texas
City of Duncanville, Texas
Texas Conference of Urban Counties
City of Georgetown, Texas
City of Richardson, Texas
County of Williamson, Texas
City of Hurst, Texas
County of Williamson, Texas
Capital Area Rural Transportation System
County of Tarrant, Texas
Williamson County Sheriff's Office
Village of Salado, Texas
City of Georgetown, Texas
Round Rock ISD
Tex Star
TexPool
Gov Deals, Inc
Property Room.Com
Governmentjobs.com (NeoGov)
ESRI
Williamson County ES#9
Williamson County ESD#9
Central Texas Purchasing Alliance
City of Cedar Park
City of Hutto
City of Leander
City of Georgetown, Texas
City of Taylor
Brushy Creek Utility Authority
County of Williamson, Texas
City of Fort Worth, Texas
City of Pflugerville, TX
Hays Consolidated ISD
Texas Department of Public Safety"
Region 14 Education Service Center
City of Austin
CAPCOG
Travis County
Texas Department of Public Safety
County of Williamson, Texas
City of Austin PD
City of Georgetown
34
I
eENTRgI x i it "A"
South Centra Texas Regional Certification A nc
* * "Increasing economic prosperity by creating opportunities and
eliminating barriers"
TIFICP
December 11, 2018
I
Raymond Bentley
American Municipal Tax Exempt Compliance Corp DBA AMTEC
90 Avon Meadow Lane
Avon, CT 06001
Dear Raymond Bentley:
We are pleased to inform you that your application for certification in our Small, Minority, Woman and Veteran Business Enterprise
(S/M1W/V) Program has been approved. Your firm met the requirements of the SCTRCA Policy and Procedure Manual and is currently
certified as a:
*ABE ESBE MBE SBE
Certification Number: 218128949
Certification Expiration: December 31, 2020
Providing the following products or services:
NAICS 541219: OTHER ACCOUNTING SERVICES
On the two year anniversary date of your certification, you are required to provide a renewal application affirming that no changes have
occured affecting your certification status. The SCTRCA will send you a Certification Renewal reminder sixty(60)days prior to your
expiration date. The SCTRCA will no longer include a certificate upon certification renewals. Your expiration date is December 31, 2020.
Please notify this office within thirty(30)days of any changes affecting the size, ownership, control requirements, or any material change
in the information provided in the submission of the certification application. Thank you in advance.
Sincerely,
Charles Johnson,
Executive Director
3201 Chem-Rides Dr..Buildine B.Suite#210.san Xwonict IN-V30 Phone:(210)2r 4RCA(4-722)
South Central Texas Regional Certification Agency
of Bexar County, Texas hereby duly affirms that:
American Municipal Tax Exempt Compliance Corp
DBA AMTEC
has successfully met the established requirements of SCTRCA's Business Enterprise Certification Program to be
certified as a
*ABE ESBE MBE SBE
Certified NAICS Codes:
NAICS 541219: OTHER ACCOUNTING SERVICES
L�NI- Certification Number: 216118949
�t Effective Date: November 16, 2016
Expiration Date: November 30, 2018
TITFZIC - � Julio Fuentes,
Executive Director
Note:This certificate is the property of the South Central Texas Regional Certification Agency and may be revoked should the above named firm graduate from or fails to comply with
SCTRCA's
Business Enterprise Program_A Certification Renewal Application is required every two years.
Exhibit "A"
I. Tab 9—Cost Proposal:
As a long-time AMTEC client,the City has direct experience with AMTEC and Senior Management at the City
has experienced the delivery of prompt, accurate and reasonably priced services. There has never been any
ambiguity over our costs or the level of service we promised and delivered.
We understand your very complex bond issues better than any other competitor. While our experience is
evidenced by more than 30 years of service and more that 6,100 issues under engagement,it is most important to
us that the City and its Bond Counsel feel that AMTEC has provided the expertise and stewardship of the arbitrage
function since 2009 and would like to continue with this relationship.
AMTEC is proposing the following guaranteed fee structure: $400 per bond issue,per year that requires
analysis. This is actually a reduction of our previously 2014 guaranteed fee of$500 per bond issue. There is no
fee difference between fixed and variable, there are no set-up fees,there are no add-on fees,there are no other
annual fees and there are no filing fees. We do not charge anything additional for interim updates or reports,we
do not charge for yield restriction calculations,which are included for no fee with our rebate calculation,nor do
we charge for preparation of IRS payment filing forms. Our guaranteed fee of$400 is all-inclusive and includes
the City's Scope of Work,in addition to AMTEC's.
Since our initial engagement in 2009,we have NEVER charged the City an hourly fee for consultation,regardless
of the amount of time necessary to respond to emails/questions or participate in phone calls or assistance with IRS
related issues. We will not start now—there is no loaded hourly rate.
Many funis attempt to muddy the waters utilizing technical terminology, in the hopes that their additional
knowledge will allow you to believe that you SHOULD be paying more for a more complex calculation. This is
simply not true. AMTEC has been providing upfront, guaranteed fees for our clients for 30 years with NO
EXCEPTIONS.
Any firm who is charging additional money for a fust-year calculation,a yield restriction calculation,a variable
rate calculation,commingled funds,transferred proceeds or any other calculation that is in addition to an arbitrage
report,is simply overcharging you. You should not be paying these fees.
Our clients ask how we can provide our services for a fraction of the fees that others charge. There is no secret:
we are very specialized and extremely efficient. We assure you that we understand your very complex bond issues
and our business. This is evidenced by 30 years of service and more than 6,100 issues under engagement. Before
these clients engaged AMTEC,many paid fees that were two to three times greater than those they pay AMTEC
today and each client is pleased with AMTEC's service.
AMTEC's guaranteed fees are guaranteed and all-inclusive. Follow-up consultation and services after
completion of the arbitrage calculation are included for no additional fee as long as AMTEC is your arbitrage
provider. AMTEC will not charge more than$400 per bond issue,per year that requires analysis,regardless
of the time and effort necessary to ensure tax compliance. This applies to future City bonds as well. If new
regulations require amending previous calculations, AMTEC will amend its previous calculations for no
additional fee to the City.
Annual reporting will be scheduled as of September 3&,the fiscal year-end of the City,and our analyses will be
delivered before November 15th. Additionally required Computation Date Reports that fall on bond
anniversary dates within the fiscal year will be prepared for no additional fee. There is no fee for an interim
requested report. There is no fee for a yield reduction calculation.
37
Exhibit "A"
Based upon the information provided by the City,there are 6 outstanding bond issues with proceeds remaining—
we have computed a guaranteed annual fee not to exceed$2,400 for Fiscal Year 2019,and a reduction in fees each
year thereafter. Please note that we will not charge any more than $2,400 to complete the arbitrage rebate
computations annually; however, it is likely that our fee will be less if it is determined that a report is not
required. Please see Attachment C for detailed pricing.
Bona Fide Debt Service Fund Testing—Issuers who maintain a commingled debt service fund for the collection
of revenues and payment of debt service on a periodic basis will require compliance testing and the possibility of
yield reduction calculations. The debt service fund will be tested annually to determine if the amount deposited
in the debt service fund was equal to the annual debt service requirement. Should it be determined that funds in
excess of the bona fide debt service fund safe harbor were deposited, the safe harbor for the issue would be
identified and yield reduction computations are provided for the excess, if any. The results of this analysis will
determine if the debt service fund functioned as a bona fide debt service fund and if so, it will be excluded from
the computation of rebate.
If any excess deposits remained in the debt service fund following the payment of debt service,they are subject to
yield restriction and depending upon the investment yield earned by these deposits,they may be required to make
yield reduction payments to the United States.
Yield Restriction and Yield Reduction Payments—Should yield reduction payments be required as a result of
excess earnings on the non-bona fide portion of the debt service fund or if construction proceeds remain unspent
at the end of the Temporary Period,which is usually three years following the date of the closing,AMTEC will
identify the amounts subject to yield restriction and complete computations and determine if Yield Reduction
Payments are required. The proceeds subject to yield restriction are identified and incorporated into AMTEC
arbitrage reports for no additional fee.
Transferred Proceeds calculations will be completed for no additional charge.
Out-of-Pocket Expenses for travel,mail and other incidentals are built into our Guaranteed Fee Structure.
Technical Innovations Reduce Fees—AMTEC developed three(3)proprietary software programs that enable
us to provide Arbitrage Rebate Compliance Services at very competitive rates.
• AMTEC ARC,AMTEC Corporation 2010-2019
• AMTEC's BancUScan System,AMTEC Corporation 2012-2019
• Swif I'EC Report,AMTEC Corporation 2016-2019
Due to these technological advances developed over the last few years,AMTEC can do more for less. We are
now able to offer single fee pricing for any bond issue regardless of size and interest rate mode(fixed or variable).
Additionally, the debt structure of an issue that contains a reserve fund is no longer charged a premium for
calculations and there are no additional fees for commingled debt service funds or other funds that are yield
restricted and subject to yield reduction payments.
IRS Audit or Other Representation—AMTEC will provide the City with the necessary support in the event of
an IRS inquiry. Additionally,we will work with the City's staff and consultants regarding all arbitrage related
matters. AMTEC will not assess an additional hourly rate for this support. Unlimited support for the City is
provided because we are your arbitrage rebate consultant.
38
City of Round Rock
T TE:ROUSo Rock Agenda Item Summary
Agenda Number:
Title: Consider executing a Professional Consulting Services Agreement with
American Municipal Tax -Exempt Compliance (AMTEC) for arbitrage
calculation services.
Type: City Manager Item
Governing Body: City Manager Approval
Agenda Date: 12/20/2019
Dept Director: Susan Morgan, CFO
Cost: $20,800.00
Indexes: General Fund
Attachments: AMTEC Agreement, AMTEC - Round Rock (TX) Arbitrage Rebate
Compliance Services #19-032 BF Cost Proposal, Arbitrage Evaluation
Matrix
Department: Finance Department
Text of Legislative File CM -2019-0402
Consider executing a Professional Consulting Services Agreement with American
Municipal Tax -Exempt Compliance (AMTEC) for arbitrage calculation services.
The City is required to have an annual arbitrage calculation performed for all
outstanding tax-exempt bond issuances. This calculation is technical in nature and
requires knowledge in this field.
Arbitrage occurs if the City earns more interest revenue on an investment of bond
proceeds than the interest paid to the bondholders. When this occurs, in most
cases the excess interest earnings must be paid to the U.S. Treasury.
In August the City solicited for arbitrage rebate compliance services with a qualified
firm. City staff evaluated four (4) proposals based on the criteria of experience,
qualifications and personnel, methodology and technical approach, and cost. It was
determined during this evaluation that AMTEC was the best value for the City in all
three criteria. This agreement is for a five (5) year term with a not to exceed amount
of $20,800.
The City has been using American Municipal Tax -Exempt Compliance (AMTEC) for
the past ten years and has been very satisfied with the level of service and pricing
City of Round Rock Page 1 Printed on 1212012019
Agenda Item Summary Continued(CM-2019-0402)
received by them. Staff recommends continuing this professional relationship with
AMTEC for 5 additional years.
Staff recommends approval.
Cost: $20,800.00
Source of Funds: General Fund
City o/Round Rock Page 2 Printed on 1212012019